CCPA Fines Rapido Rs 10 Lakh for Misleading Campaigns, Orders Refunds

The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on Rapido Roppen Transportation Services Pvt. Ltd. for misleading advertising and unfair trade practices related to two campaigns: “Guaranteed Auto” and “Auto in 5 minutes or get Rs 50.” The enforcement action, taken after a suo motu cognisance of the campaigns, requires Rapido to discontinue the advertisements immediately and to reimburse the promised Rs 50 to affected customers in full, with a compliance report due within 15 days. The order also notes that the ads were run across 120 cities in multiple regional languages for roughly 548 days, amplifying their impact on consumers.

The regulator found that the campaigns created a false impression of guaranteed service. The promised Rs 50 was not paid in cash but issued as Rapido coins, valid for seven days and redeemable only against bike rides. The terms and conditions stated that the guarantee and related benefits were provided by individual captains rather than by Rapido itself, an arrangement the CCPA flagged as a deliberate shift of liability. The authority stressed that the combination of prominent claims with restrictive, hidden terms...