CCPA imposes ₹10 lakh fine on Rapido for misleading auto service claims

The CCPA stated that Rapido made misleading claims in its promotional campaigns, including "Guaranteed Auto" and "AUTO IN 5 MIN OR GET ₹50", which were not substantiated

The Central Consumer Protection Authority (CCPA) on Wednesday said it has imposed a penalty of ₹10 lakh on bike-taxi platform Rapido for misleading advertisements and violations of consumer protection norms.

 

Misrepresentation in ads

The CCPA said Rapido made misleading claims in its promotional campaigns, such as “Guaranteed Auto” and “AUTO IN 5 MIN OR GET ₹50”, which were not substantiated.

 

“The material limitation that the benefit was restricted up to ₹50 was omitted from the main claim and, if at all disclosed elsewhere, was not presented with the same prominence, placement, or clarity as required under the guidelines. This omission effectively contradicted the main claim and concealed essential information, making the advertisement deceptive,” the CCPA said. 

 

 

It added that instead of the promised ₹50, consumers received only ₹5 as Rapido coins, valid for seven days. The original claim misled consumers into believing that ₹50 in real terms would be credited if the guaranteed service was not provided.

 

The authority also noted that the misleading claim was disseminated continuously for at least 548 days and propagated in multiple regional languages, significantly increasing its reach and the likelihood of consumers being misled.

 

CCPA order

Taking note of the false advertising, the CCPA directed Rapido to discontinue the ads with immediate effect and pay a penalty of ₹10 lakh.

 

It further instructed the bike-taxi platform to ensure that all customers who availed of the offer are reimbursed the promised amount in full, without delay or conditions.