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The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹10 lakh on Rapido, the bike and auto ride-hailing platform, citing misleading advertisements and unresolved consumer grievances. The regulator has also directed the company to issue refunds to its customers, marking a significant intervention in India’s rapidly expanding app-based mobility sector.
Misleading Ads Under Scrutiny
Rapido, which has gained popularity in recent years for offering short-distance commute solutions, came under the scanner after complaints alleged that its advertisements promised benefits that were not delivered. Among the campaigns flagged were “Guaranteed Auto in 5 Minutes” and “₹50 Cashback on Rides.”
According to the CCPA, these advertisements created false expectations, as many riders reported not receiving the promised benefits. In several instances, Rapido allegedly offered the cashback not in direct monetary terms but as in-app coins, which were valid only for seven days and redeemable exclusively on subsequent rides. This, regulators ruled, amounted to misrepresentation.
Additionally, the company faced complaints about driver misconduct, unresolved refund claims, and delayed redressal of service issues. Data presented to the authority showed that nearly half of the consumer complaints filed since June 2024 remained unaddressed, further strengthening the case for action.
Refunds and Compliance Mandate
In its order, the CCPA instructed Rapido to ensure that affected customers receive proper refunds equivalent to the cashback promised, rather than temporary in-app credits. The authority has also mandated that the company discontinue deceptive advertisements and submit a compliance report within 15 days.
The decision underscores growing regulatory vigilance on digital platforms operating in consumer-facing sectors. Experts note that the ruling may push companies like Rapido to adopt stricter self-regulation and transparency in customer communications.
Rapido, with a presence across multiple Indian cities, has not yet issued a public statement in response to the penalty.
