The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on the ride-hailing company Rapido after receiving complaints that its advertisements misled customers with false promises. Campaigns such as “Guaranteed Auto” and “Auto in 5 min or get ₹50” gave the impression of assured services, creating unrealistic expectations among users. The regulator found that these ads were deceptive in nature and violated consumer rights by presenting conditions in a way that misrepresented the actual benefits being offered.
The investigation revealed that the company’s cashback promise of ₹50 was not fulfilled in cash but was instead provided as “Rapido coins.” These coins were not equivalent to money and carried several restrictions, such as being valid only for bike rides, having a short seven-day expiry period, and imposing limitations on their usability. The CCPA held that this model essentially forced consumers into repeat usage of Rapido under unfair terms and conditions, thereby restricting their freedom of choice.
The regulator also noted that these misleading advertisements had been running for an extended period, amplifying their negative impact. Data presented in the order showed that the campaigns were broadcast continuously for 548 days, spanning nearly one and a half years, across more than 120 cities in different languages. This widespread and prolonged exposure significantly increased the number of people misled by the campaigns, making the violation more severe in scale and effect.
During these campaigns, Rapido received more than 1,200 consumer complaints between June 2024 and July 2025. The grievances ranged from overcharging, driver misbehavior, and delays in processing refunds to the company’s failure to honor its cashback promises. Alarmingly, almost half of these complaints remained unresolved, reflecting poor grievance redressal mechanisms within the company and further strengthening the case for regulatory action.
In its formal order, the CCPA stated that Rapido had adopted “a practice calculated to mislead consumers by both commission and omission.” The regulator concluded that the company deliberately overstated the reliability and efficiency of its services while concealing important conditions that significantly affected consumer interests. This was deemed a serious breach of consumer trust and an unfair trade practice.
As part of the penalty, Rapido has been ordered not only to pay the fine but also to withdraw all misleading advertisements with immediate effect. Furthermore, the company must refund the promised ₹50 in full, in cash, to all consumers who were affected by these campaigns. The CCPA has also directed Rapido to submit a compliance report within 15 days, ensuring that corrective measures are taken without delay.
This order represents one of the latest enforcement actions by the CCPA as it tightens its oversight of misleading advertising practices in India’s expanding digital services market. By taking a strong stance against deceptive marketing, the regulator aims to safeguard consumer rights and set a precedent for stricter accountability among companies operating in the online services sector.
