The Central Consumer Protection Authority (CCPA) has fined ride-hailing company Rapido ₹10 lakh for misleading advertisements and unfair trade practices, while also directing it to issue unconditional cash refunds to users.
Misleading Promises
The regulator’s action was triggered by Rapido’s promotional campaigns—“Guaranteed Auto” and “Auto in 5 min or get ₹50.” Investigations revealed that the promised ₹50 compensation was never provided in cash. Instead, users were given “Rapido coins” valid for just seven days and redeemable only on bike rides, which the CCPA described as a coercive tactic to push repeat usage.
Widespread Impact
Rapido operates in over 120 cities, and the “misleading” advertisements were actively run for nearly 1.5 years (around 548 days) in multiple regional languages across the country. During this period, the company received over 1,200 complaints, nearly half of which remain unresolved. These included issues such as overcharging, delayed refunds, and driver misconduct.
Given the wide reach and prolonged duration of the campaign, the CCPA—established under Section 10 of the Consumer Protection Act, 2019—said it “found it necessary to step in to safeguard consumer interests.”
Legal Mandate
Empowered under Sections 10, 20 and 21 of the Act, the CCPA has the authority to protect, promote and enforce consumer rights, including curbing misleading advertisements and unfair trade practices. Accordingly, it has imposed a monetary penalty on Rapido and ordered corrective action.
Orders to Rapido
The company has been ordered to:
- Immediately withdraw and discontinue all misleading advertisements.
- Refund ₹50 in cash to all affected users without any conditions.
- Submit a full compliance report to the authority within 15 days.
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