Rs 10-lakh penalty imposed on Rapido for misleading ads
Central Consumer Protection Authority directs firm to compensate customers who used its "Auto in 5 minutes or Get Rs 50" offer but did not get what was promised
Ride-hailing platform Rapido has been fined with Rs 10 lakh for misleading advertisements and unfair trade practices, the Consumer Affairs Ministry said on Thursday (August 21).
The Central Consumer Protection Authority (CCPA), a regulatory body that comes under the Ministry of Consumer Affairs, Food & Public Distribution Department, has imposed a penalty on Rapido. The CCPA also directed the firm to reimburse customers who used the company's "Auto in 5 minutes or Get Rs 50" offer but did not receive the promised compensation.
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The watchdog took action after examining Rapido's advertisements, which promised "Auto in 5 minutes or Get Rs 50" and "Guaranteed Auto," and found them to be false and misleading to consumers.
Spike in complaints
Data from the National Consumer Helpline showed complaints against Rapido spiked to 1,224 between June 2024 and July 2025, compared with 575 complaints in the previous 14-month period.
The CCPA's investigation revealed that disclaimers in Rapido's advertisements were displayed in an extremely small, unreadable point size. The promised Rs 50 benefit was not actual currency but "Rapido coins" worth "up to Rs 50", which could only be used for bike rides and expired within seven days.
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"Such restrictions materially reduced the value of the offer and effectively compelled consumers to use another service from Rapido within an unreasonably short time," the ministry said in the statement.
The authority has ordered Rapido to discontinue the misleading advertisements immediately.
(With agency inputs)