Rapido Fined ₹10 Lakh for Misleading Ads; Regulator Orders Full Refunds to Users
Rapido Fined ₹10 Lakh for Misleading Ads; Regulator Orders Full Refunds to Users
The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on ride-hailing platform Rapido for running misleading advertisements that promised guaranteed auto services and cashback benefits.
The CCPA directed Rapido to refund the promised ₹50 compensation to all affected users in full and submit a compliance report within 15 days. The company has also been asked to withdraw all such misleading ads immediately.
The action follows multiple complaints that campaigns like “Guaranteed Auto” and “Auto in 5 min or get ₹50” misled consumers by implying assured services. Instead of cash, the promised ₹50 compensation was provided as “Rapido Coins,” valid only for bike rides, restricted in usage, and valid for just seven days — forcing repeat usage under unfair conditions.
According to CCPA data, these advertisements ran for 548 days across 120+ cities, generating over 1,200 consumer complaints between June 2024 and July 2025. Nearly half of these grievances remain unresolved, including reports of overcharging, refund delays, and failure to honour cashback commitments.
The regulator said the company’s ads overstated reliability while concealing critical terms, violating consumer rights. The move highlights increasing scrutiny of misleading claims in India’s expanding digital services sector
