The Central Consumer Protection Authority (CCPA) has issued a final order against Roppen Transportation Services, the operator of Rapido, over its ruling that the ride-hailing platform used misleading advertising practices on its app, website and YouTube channel.
The authority took the action suo motu after examining Rapido’s promotional campaign, which promised users “Guaranteed auto, Auto in 5 min or get INR50”. The CCPA said this claim was made without adequate disclaimers and intentionally created a false impression among consumers about the certainty of service and compensation.
The CCPA reported that between April 2023 and May 2024, 575 complaints had been filed against the company on the National Consumer Helpline. While many of these complaints involved service deficiencies, non-refunds and overcharging, several were specifically about the “5 minutes or INR50” guarantee.
In these instances, consumers were offered only INR5 in Rapido coins rather than the promised INR50, a practice the CCPA deemed misleading and prejudicial to consumer rights. The order states that such advertising undermines the right to be informed under the Consumer Protection Act, 2019, and will erode trust in digital platforms that rely on transparent consumer engagement.
The CCPA also highlighted the company’s failure to address complaints raised through the official grievance redressal channels, despite repeated notices. A particular concern was the scale of the advertisement’s reach, having been broadcast widely, including during the Indian Premier League, thereby exposing millions of cricket viewers to an assurance that could not be substantiated.
Consumers were led to rely on a guarantee that was neither honoured in spirit nor explained with sufficient clarity. This demonstrated a disregard for consumer interest and regulatory obligations, the CCPA said.
In addition to the misleading nature of the campaign, the order recorded the relief sought by consumers, including a public apology, the withdrawal of the offending advertisement and adequate compensation for those who had been misled.
Rapido provides ride-hailing services for bike taxis, auto rickshaws and taxicabs in India.
