Ride-hailing platform Rapido has come under fire from the Central Consumer Protection Authority (CCPA), which has imposed a Rs 10 lakh fine for allegedly deceptive advertising practices. The company is also required to issue full refunds to customers misled by promotional claims related to guaranteed services and cashback.

The penalty stems from a long-running advertising campaign that falsely promised benefits such as assured auto-rickshaw availability and cashback if services were delayed. The authority noted that such assurances were often not fulfilled as advertised.

One of the offers promoted by Rapido claimed “Auto in 5 minutes or get Rs 50.” However, the promised amount was not returned in cash, but in the form of in-app currency “Rapido coins” which could only be redeemed for bike rides. These coins were also subject to limitations such as a 7-day expiry and usage restrictions.

The CCPA found this practice to be misleading. In its official statement, the body stated:
“This condition, undisclosed in the advertisement, not only diminishes the true worth of the promised Rs 50 but also creates undue compulsion for repeat engagement under restrictive terms.”

According to data reviewed by the regulator, these advertisements ran for 548 days — nearly a year and a half across more than 120 cities and in multiple regional languages. This wide reach increased the scale of consumer impact.

The regulator acted on its own to investigate the issue and found the advertisements violated multiple provisions under the Consumer Protection Act, 2019. “The pattern of deceptive practices such as ‘Guaranteed Auto’ and ‘Auto in 5 min or get Rs 50’ falls within the definition of a ‘misleading advertisement’ under Section 2(28) and ‘unfair trade practice’ under Section 2 (47),” the CCPA said.

Consumer complaints were widespread. Between June 2024 and July 2025, over 1,200 grievances were lodged against Rapido, covering issues like overpricing, delays in refunds, driver-related problems, and the failure to deliver on cashback promises. Prior to that, between April 2023 and May 2024, another 575 complaints were reported.

Worryingly, nearly half of the more recent complaints remained unaddressed.
“The unresolved grievances pending in NCH clearly highlight the apathetic attitude towards the consumers,” the authority remarked.

The CCPA concluded that the company overstated the reliability of its services while deliberately hiding key conditions that impacted consumers’ choices. “Rapido had engaged in a practice calculated to mislead consumers by both commission and omission,” the order observed.

In addition to the financial penalty, the company has been instructed to stop the misleading advertisements immediately and to process full Rs 50 refunds to all eligible users. Rapido is also required to submit a compliance report to the authority within 15 days.

This ruling forms part of the CCPA’s broader efforts to clamp down on false advertising in the digital economy and ensure greater consumer transparency.