CCPA Imposes â‚ą10 Lakh Penalty on Rapido for Misleading Advertisements and Unfair Trade Practices.
Economy Business
The Central Consumer Protection Authority (CCPA) has levied a ₹10 lakh fine on ride-hailing platform Rapido for deceptive advertisements such as “Guaranteed Auto” and “Auto in 5 min or get ₹50,” mandating prompt customer refunds and compliance.
- The CCPA initiated a suo motu probe into Rapido’s claims—“Guaranteed Auto” and “Auto in 5 min or get ₹50”—and concluded that these promotions misled consumers by overpromising guaranteed services and benefits.
- Further scrutiny revealed that the promised ₹50 was not actual cash but “Rapido coins,” valid only for bike rides, expiring in seven days, and subject to undisclosed conditions—reducing the promise’s real value.
Main Point :- (i) Complaints filed with the National Consumer Helpline surged to 1,224 between June 2024 and July 2025, up from 575 in the previous period. The CCPA directed Rapido to refund affected users, scrap misleading advertisements, and submit a compliance report.
(ii) Acting under the Consumer Protection Act, 2019 and 2022 advertising guidelines, the CCPA enforced penalties to uphold consumer transparency and deter deceptive commercial practices, reinforcing its heightened regulatory stance in the digital economy.
CEO : Aravind Sanka
Headquarters: Bangalore
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