Rapido to Pay ₹10 Lakh Fine for Advertising Misleading Promises of Guaranteed Auto in 5 Minutes

Rapido has to pay ₹10 lakh fine for running misleading advertisements and following unfair trade practices. The company came under CCPA’s scrutiny after advertising a scheme promising "Auto in 5 minutes or get ₹50", which the CCPA found to be false and deceptive.

What is the Reality Behind Rapido’s Misleading Offer?

Although Rapido claimed users would get ₹50 if an auto didn’t arrive in 5 minutes, the truth was different:

• The ₹50 was not real money but “Rapido coins”.
• These coins were valid only for Rapido bike rides, not autos.
• The coins were valid for just 7 days.
• The offer was limited to “up to ₹50”, not a guaranteed ₹50.
• The fine print said the offer was from individual captains, not Rapido itself, contradicting the main message.

The CCPA found that these conditions were either hidden or unclear, making the advertisement misleading and unfair to consumers.

What Do Consumers Say About Rapido?

According to data from the National Consumer Helpline (NCH), complaints against Rapido more than doubled in the past year:

• 575 complaints from April 2023 to May 2024
• 1,224 complaints from June 2024 to July 2025

Many complaints were about:

• Failure to provide the promised service
• No refunds
• Overcharging
• Unfulfilled “5-minute” guarantee

Despite complaints being sent to Rapido, most remain unresolved, prompting CCPA to take strict action.

What Has Rapido Been Ordered to Do?

Apart from the ₹10 lakh penalty, CCPA has directed Rapido to:

• Stop running the misleading ads immediately
• Reimburse ₹50 to all users who were promised the offer but never received it — in real money, without delay or conditions

Why This Matters?

Rapido operates in over 120 cities and ran these misleading ads for about 1.5 years (548 days) in many languages. Given the large reach and growing complaints, CCPA acted under the Consumer Protection Act, 2019 to protect consumers.

Read more: Rapido Launches New Food Delivery App 'Ownly' in Bengaluru.

Conclusion

This action by the CCPA sends a strong message to companies that misleading ads and unclear promises will not be tolerated. It highlights the importance of transparency and honesty in advertising, especially when it affects lakhs of consumers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.