Have you ever booked an auto online and believed the exciting offers shown in big, bold letters? Well, thousands of Indian users faced disappointment recently when Rapido, one of the most popular ride-hailing apps, failed to deliver on its promises. The Central Consumer Protection Authority (CCPA) has now imposed a ₹10 lakh fine on Rapido for running misleading and unfair advertisements.
This decision is a big win for Indian consumers and a warning to companies that make tall claims without fulfilling them. Let’s understand what exactly happened and why CCPA took strict action.
Why CCPA Penalised Rapido
Rapido launched a promotional campaign with the tagline “Auto in 5 minutes or get ₹50” — a promise that attracted thousands of users across India. However, after receiving a flood of complaints, the CCPA started an investigation and found several issues in the campaign.
₹50 Compensation That Wasn’t Really ₹50
Rapido claimed that customers would get ₹50 back if the auto didn’t arrive within 5 minutes. But here’s the twist:
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The so-called ₹50 compensation was not real money.
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Users received “Rapido coins” instead, which couldn’t be used for autos — only for bike rides.
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To make things worse, these coins expired within just seven days, forcing customers to book another ride quickly.
This trick left customers disappointed and confused, as the offer was not as valuable as it sounded.
Contradictory Terms and Conditions
Rapido’s ads loudly claimed “Guaranteed Auto”, but the fine print quietly shifted the responsibility to individual drivers, saying Rapido itself was not responsible if the promise wasn’t fulfilled.
This direct contradiction between the main headline and the terms and conditions is what the CCPA called misleading advertising.
Disclaimers That Nobody Could Read
The ads also carried the usual “T&C Apply” disclaimer, but there was a catch — the text was so tiny that it was nearly impossible to read.
According to the Guidelines for Prevention of Misleading Advertisements, 2022, disclaimers must be:
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Clear
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Readable
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Not contradict the main claim
Rapido failed to follow these rules, which further strengthened CCPA’s case.
Surge in Consumer Complaints
Between June 2024 and July 2025, the National Consumer Helpline (NCH) recorded 1,224 complaints against Rapido.
These complaints included:
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Overcharging riders
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Failed auto bookings
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Non-fulfillment of promised offers
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Refund issues and unresolved grievances
This growing dissatisfaction forced authorities to step in and protect consumers’ interests.
What the CCPA Said
The CCPA made it clear that companies can’t mislead consumers using catchy ads and unreadable disclaimers. It stated that:
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Compensation offers must be transparent and fair
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Disclaimers cannot contradict the main advertisement
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Misleading claims will attract heavy penalties
Since Rapido’s campaign ran for over 1.5 years across 120 cities in multiple languages, the penalty highlights the CCPA’s strict stand against deceptive marketing practices.
What Indian Consumers Should Learn
This incident is an eye-opener for Indian consumers. Here are some tips to avoid falling for misleading offers:
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Read the fine print carefully before trusting “guaranteed” claims
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Be cautious of offers that sound too good to be true
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Check refund and compensation policies before booking
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Report misleading ads to the National Consumer Helpline (NCH)
Final Thoughts
The CCPA’s action against Rapido sends a strong message to all brands in India: customer trust cannot be compromised. This move also empowers Indian users to demand transparency and fair treatment from service providers.
So, next time you see an ad promising “guaranteed cashback” or “assured compensation”, make sure to read the fine print and stay informed.
Disclaimer
This article is for informational purposes only. It is based on official findings from the Central Consumer Protection Authority (CCPA) and publicly available reports. The aim is to create awareness and not to defame Rapido or any other brand.
