Rapidly Faced a Fine of Rs 1,000,000, Ordered to Repay Customers and Remove Ads Due to, CCPA Stated, 'Manipulative and Premeditated'
The Central Consumer Protection Authority (CCPA) has taken action against ride-hailing service Rapido, fining the company for misleading advertisements.
The CCPA stated that Rapido's advertisements used unfair practices and over-exaggerated services and cashback benefits to mislead customers and boost sales. As a result, the company was ordered to take down these misleading advertisements immediately.
Rapido ran an advertisement campaign in multiple languages that promised 'Auto in 5 mins or get Rs 50 cashback' and other guaranteed services. However, these guarantees were found to be misleading, as the compensation was given in the form of "Rapido coins," which had a limited validity of just seven days.
The CCPA also found that Rapido engaged in practices calculated to mislead consumers by both commission and omission. For instance, the company was fined for forcing repeat usage of its services under unfair terms.
Over 1,200 consumer complaints were received by Rapido between June 2024 and July 2025, with almost half of these complaints remaining unresolved. The CCPA observed an increase in consumer complaints against Rapido over the subsequent period, leading to the order.
The misleading advertisements ran for over 548 days (1.5 years) across India in 120 cities. In response to the CCPA order, Rapido is required to submit a compliance report within 15 days and pay a penalty of Rs 10 lakh.
The CCPA also directed Rapido to issue refunds to affected customers. The company has been instructed to ensure transparency and fairness in its advertising practices moving forward to prevent any future misleading activities.
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