Why Central Consumer Protection Authority imposed penalty of Rs 10 Lakh on Rapido-online ride hailing platform
In yet another action towards protection of consumer rights, the Central Consumer Protection Authority (CCPA) has ordered Rapido (Roppen Transportation Services Pvt. Ltd.) to pay penalty of Rs 10 lakh for publishing misleading advertisement and unfair trade practice.
In addition, the Authority has also directed the online ride hailing platform to ensure that any consumer who availed the “AUTO IN 5 MIN OR GET Rs 50” offer and did not receive the promised Rs 50 compensation shall be reimbursed the said amount in full without any further delay or condition.
CCPA took cognizance of the misleading advertisements of Rapido that promised consumers “AUTO IN 5 MIN OR GET Rs 50” and “Guaranteed Auto”. After detailed examination, CCPA has held these advertisements to be false, misleading and unfair to consumers and has directed to discontinue the misleading advertisements with immediate effect.
Data from the National Consumer Helpline (NCH) showed:
575 complaints against Rapido between April 2023 and May 2024.
1,224 complaints between June 2024 and July 2025.
Promised Rs 50 benefit was in Rapido coins
CCPA’s investigation found that the disclaimer “T&C Apply” in Rapido’s advertisements was displayed in extremely small and unreadable font. The promised Rs 50 benefit was not actual currency (in rupees) but “Rapido coins”, and even then, the benefit was “up to Rs 50” and not always exactly Rs 50.
These coins could only be redeemed against Rapido bike rides and carried a validity of just 7 days. Such restrictions materially reduced the value of the offer and effectively compelled consumers to use another service from Rapido within an unreasonably short time. Such omissions created a false impression of assured service and misled consumers into choosing Rapido.
Contradictory stance attempted to shift liability away from the company
Further, while the advertisement prominently claimed “Auto in 5 min or get Rs 50”, the Terms and Conditions stated that the guarantee was being offered by individual captains and not by Rapido itself. This contradictory stance attempted to shift liability away from the company, misleading consumers about the very assurance made in the advertisement.
Growing number of complaints from consumers against Rapido
CCPA noted that over the last two years, the NCH has received a growing number of complaints from consumers against Rapido. Many of these grievances relate to deficiencies in services, non-refund of paid amounts, overcharging, failure to provide promised services, and non-fulfillment of the guaranteed “5-minute” service. The steady rise in such complaints reflects a wider pattern of consumer dissatisfaction, prompting CCPA to take strict action to safeguard consumer interests. Most of these grievances remain unresolved despite being shared with Rapido.
CCPA urges consumers to be cautious about advertisements that make tall promises or use phrases like “guaranteed” or “assured” without explaining the conditions. If consumers face issues of misleading advertisements or unfair trade practices, they can:
Call the National Consumer Helpline (1915)
Use the NCH App or website to file complaints