The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh fine on Rapido for misleading advertisements. The popular ride-hailing service will also have to refund customers who were impacted by the deceptive practices. This decision underscores the importance of truthful advertising and consumer protection within the transportation sector.
The deceptive ads by Rapido, which ran in major cities across India, promised benefits such as guaranteed autos, 5-minute auto availability, and ₹50 cashback. However, these promises were often not delivered, leading to user complaints. The CCPA’s investigation revealed discrepancies between the advertised benefits and the actual user experience. The CCPA has directed Rapido to rectify the misleading information and ensure that customers are compensated.
Since June 2024, numerous complaints have been filed against Rapido. These complaints have been filed for not providing timely rides and not giving cashback as promised. The CCPA’s ruling targets the misleading promotion of a ₹50 cashback offer, which was advertised as a cash benefit but was provided as coins usable only for limited future rides. Rapido must now provide genuine ₹50 cashback and cease using misleading advertising. The company has been instructed to submit a compliance report to the CCPA within 15 days.