Consumer protection authority CCPA has imposed a penalty of Rs 10 lakh on ride-hailing platform Rapido for misleading advertisements and unfair trade practices, the consumer affairs ministry said on Thursday.
The Central Consumer Protection Authority (CCPA) also directed Rapido to reimburse customers who used the company's "Auto in 5 minutes or Get Rs 50" offer but did not receive the promised compensation.
The watchdog took action after examining Rapido's advertisements that promised "Auto in 5 minutes or Get Rs 50" and "Guaranteed Auto," and found them to be false and misleading to consumers.
Data from the National Consumer Helpline showed complaints against Rapido surged to 1,224 between June 2024 and July 2025, compared with 575 complaints in the previous 14-month period.
The CCPA's investigation revealed that disclaimers in Rapido's advertisements were displayed in extremely small, unreadable fonts. The promised Rs 50 benefit was not actual currency but "Rapido coins" worth "up to Rs 50," which could only be used for bike rides and expired within seven days.
The authority found that while advertisements prominently claimed the guarantee, terms and conditions stated the assurance was offered by individual drivers, not Rapido itself - an attempt to shift liability away from the company.
"Such restrictions materially reduced the value of the offer and effectively compelled consumers to use another service from Rapido within an unreasonably short time," the ministry said in a statement.
According to the Guidelines for Prevention of Misleading Advertisements and Endorsements 2022, disclaimers cannot contradict main claims or conceal material information. The CCPA said Rapido's advertisements violated these requirements by omitting key limitations without equal prominence.
Rapido operates in over 120 cities and ran the misleading campaign for approximately 548 days in multiple regional languages. Many consumer complaints relate to service deficiencies, non-refunds, overcharging and failure to provide promised services, with most grievances remaining unresolved despite being shared with the company.
The CCPA urged consumers to be cautious about advertisements making "guaranteed" or "assured" promises without clear conditions.
Consumers facing misleading advertisements can call the National Consumer Helpline at 1915 or use the NCH app or website to file complaints.
The authority has ordered Rapido to discontinue the misleading advertisements immediately.
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