CCPA Slaps ₹10 Lakh Fine on Rapido for Misleading Ads

Epil Bodra

| 2025-08-25 | Industry & Events

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The Central Consumer Protection Authority (CCPA) recently took a firm stand against Rapido (Roppen Transportation Services Pvt. Ltd.) for misleading advertising and unfair trade practices, levying a ₹10 lakh penalty in response to deceptive claims made by the ride-hailing platform.

What Did the Ads Promise?

With the slogans “AUTO IN 5 MIN OR GET ₹50” and “Guaranteed Auto,” Rapido made it apparent that customers could expect to either have an automobile in 5 minutes or get ₹50. After investigation, the CCPA concluded that these claims were false and deceptive, betraying the confidence of consumers.

Terms & Conditions Hidden in Fine Print

Digging deeper, the regulator found critical disclaimers buried in unreadably small font, hardly visible to users. The ₹50 was not cash but Rapido Coins redeemable only for subsequent rides within seven days, a nuance that drastically reduced the offer’s real value.

To add to the confusion, the guarantee was actually offered by individual drivers (“captains”), not Rapido itself. The change in who is responsible for accountability confused customers about who was really in charge of following through on advertising promises.

Surge in Consumer Complaints

The National Consumer Helpline (NCH) received 575 complaints between April 2023 and May 2024. A total of 1,224 complaints were filed between June 2024 and July 2025. Many of these complaints were about poor service, overcharging, not getting refunds, and issues with fulfilling agreements. NCH shared these concerns with Rapido, but Rapido did not address them.

CCPA’s Actions & Consumer Protection

Under the Consumer Protection Act of 2019, the Central Consumer Protection Authority (CCPA) can punish companies for misleading advertisements and make them take corrective actions. In the case of Rapido, the regulator:

Ordered an immediate end to the misleading campaigns.
Mandated ₹50 compensation, where promised but undelivered, be issued in full, without conditions.
Rapido is required to submit a compliance report within 15 days.

These rulings show that the CCPA aims to safeguard consumer rights and promote transparency in online advertising.

The need of being transparent in marketing claims and the strength of regulation in online marketplaces are both timely reminders provided by this enforcement action against Rapido. Customers should be wary of “guaranteed” products that include unstated conditions. Meanwhile, to maintain trust, brands need to be open and honest.

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