CHENNAI: The Central Consumer Protection Authority (CCPA) has imposed a fine of Rs10 lakh on bike-taxi platform Rapido for running misleading advertisements and engaging in unfair trade practices.
The penalty relates to Rapido’s promotional campaigns “Guaranteed Auto” and “AUTO IN 5 MIN OR GET Rs 50.” The regulator found that these advertisements made promises that were not delivered as advertised.
According to the CCPA order, as quoted in reports, Rapido’s claim of compensating customers with Rs 50 if an auto was not available within five minutes was deceptive. The benefit was not provided in cash but as “Rapido coins,” usable only for bike rides and expiring within seven days. This made the actual value significantly lower than the advertised Rs 50.
The authority also noted that important disclaimers, such as “up to Rs 50” and conditions of use, were hidden in small print or brief “T&C apply” notes, making them less prominent than the main claim. Furthermore, the so-called guarantee was offered by individual drivers and not by Rapido itself, a detail that was not communicated clearly to consumers.
The misleading advertisements ran for about 548 days across more than 120 cities in multiple regional languages. During this period, consumer complaints surged. Data from the National Consumer Helpline (NCH) showed that grievances against Rapido rose from 575 cases between April 2023 and May 2024 to 1,224 cases between June 2024 and July 2025. Many complaints related to failed services, overcharging, non-refunds, and driver misconduct.
In its order, the CCPA directed Rapido to:
Immediately stop the misleading campaigns.
Refund the ₹50 compensation in full to affected consumers, without conditions.
Submit a compliance report within 15 days.
The regulator said the company’s actions violated consumer rights and created unfair disadvantages for users.
This move highlights CCPA’s growing scrutiny of digital service platforms and their marketing practices. It also signals that companies must ensure transparency in advertising and cannot hide behind disclaimers or technicalities.
Rapido’s case adds to the broader debate around accountability in app-based transport services, as regulators step up efforts to protect consumers in the fast-growing digital economy.