Rapido Fined Rs 10 Lakh By CCPA For Misleading Ads Promising 'Auto In 5 Minutes', 'Rs 50 Refund'

The "Rs 50" refund was not a cash payment but was, in fact, given as Rapido coins that expired within seven days. This condition was mentioned in a tiny font under the Terms and Conditions (T&C) on its website. The CCPA flagged this as a deceptive practice, stating that the company was luring users into booking rides and then shifting liability to its drivers.

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The CCPA also noted that the company had listed all terms and conditions in a very small font, making it difficult for users to read and understand the conditions. The fine print T&C contradicted the main claims, and the company's disclaimer in the app was in an unreadably small font. The terms and conditions also attempted to shift liability by stating that the guarantee was provided by the "captain" (drivers) and not the company itself.

For these violations, the CCPA has imposed a penalty of Rs 10 lakh on Rapido, citing misleading advertising and unfair trade practices. The company must also reimburse all customers who were promised Rs 50 in compensation but did not receive it. The CCPA issued a warning, stating that Rapido must provide the compensation without delay.

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The CCPA's action was prompted by a significant increase in consumer complaints against Rapido. The National Consumer Helpline (NCH) received 575 complaints from April 2023 to May 2024 and 1,224 complaints from June 2024 to July 2025.

The CCPA found that Rapido's ads violated the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022, which state that disclaimers cannot contradict the main claim or hide important information. Despite its huge network operating in over 120 cities, Rapido's campaigns ran for 1.5 years until the CCPA intervened to protect consumer interests.

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In a press release, the CCPA has cautioned consumers about ads that make grand promises or use words such as "guaranteed returns" without clearly explaining the associated conditions. Consumers can file complaints about misleading ads or unfair trade practices by calling the National Consumer Helpline at 1915 or by using the NCH app or website.