Central Consumer Protection Authority slaps Rs 10 lakh fine on Rapido; Here's why

In a move to curb misleading claims in the ride-hailing sector, the Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on Roppen Transportation Services Pvt. Ltd., which operates under the brand Rapido. The regulator found the company guilty of publishing deceptive advertisements and engaging in unfair trade practices.

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The penalty stems from Rapido’s campaign “AUTO IN 5 MIN OR GET Rs 50” and “Guaranteed Auto,” which promised riders either a quick service or compensation. CCPA’s investigation revealed that the supposed Rs 50 benefit was not cash but “Rapido coins,” redeemable only for bike rides, with a validity of just seven days. The coins were also capped at “up to Rs 50,” contradicting the headline claim of a flat assurance.

The authority noted that the disclaimer “T&C Apply” was displayed in font too small to be read easily, concealing critical conditions. Furthermore, the company’s terms sought to shift liability to individual drivers, while advertisements suggested Rapido itself was guaranteeing service.

Between April 2023 and July 2025, the National Consumer Helpline (NCH) received nearly 1,800 complaints against Rapido, a sharp rise that highlighted persistent issues such as service deficiencies, overcharging, non-refunds, and failure to honor guarantees.

The misleading campaign ran for roughly 548 days across more than 120 cities in multiple regional languages, amplifying its impact. CCPA has ordered Rapido to withdraw the advertisements immediately and to reimburse, in full and without delay, any consumer who was denied the promised Rs 50 compensation. The company must submit a compliance report within 15 days.

Citing the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022, the regulator emphasized that disclaimers cannot contradict main claims or conceal material facts. It said Rapido’s practices created “a false impression of assured service,” effectively coercing repeat usage under restrictive terms.

The CCPA urged consumers to remain cautious of advertisements that use “guaranteed” or “assured” language without transparent disclosure. Complaints of misleading ads or unfair practices can be lodged through the National Consumer Helpline (1915) or its digital platforms.