Rapido Slapped with Rs 10 Lakh Fine by CCPA for Misleading Ads
The Central Consumer Protection Authority (CCPA) has imposed a Rs 10 lakh fine on Rapido's parent company, Roppen Transportation Services, for misleading advertisements. The company's 'Guaranteed Auto' and 'Auto in 5 min or get Rs 50' claims were found to violate fair trade practices. The promised Rs 50 benefit was paid as in-app tokens with undisclosed conditions. The misleading campaign ran for 548 days across 120+ cities. Consumer complaints against Rapido have more than doubled, with issues of overcharging and non-refunds. The CCPA has ordered Rapido to stop the misleading ads, reimburse affected consumers, and submit a compliance report within 15 days.
*this image is generated using AI for illustrative purposes only.
Rapid Multimodal Logistics has found itself in hot water with consumer protection authorities over its advertising practices. The Central Consumer Protection Authority (CCPA) has imposed a hefty fine of Rs 10 lakh on Roppen Transportation Services, Rapido's parent company, for misleading advertisements that violated fair trade practices.
Misleading Claims and Unfair Practices
The CCPA's investigation revealed that Rapido's promotional claims of 'Guaranteed Auto' and 'Auto in 5 min or get Rs 50' were misleading and constituted unfair trade practices. The regulator found that the promised Rs 50 benefit was not as straightforward as advertised:
- The benefit was paid as in-app tokens
- Tokens were valid for only seven days
- Tokens were redeemable exclusively for bike rides
These crucial conditions were not disclosed in the advertisements, leaving consumers misinformed about the actual terms of the offer.
Widespread Impact
The misleading advertisements had a significant reach:
- Ran for 548 days
- Spread across over 120 cities
- Advertised in multiple languages
This extensive campaign potentially affected a large number of consumers across India.
Rising Consumer Complaints
The CCPA's action comes in the wake of a sharp increase in consumer complaints against Rapido:
| Period | Number of Complaints |
|---|---|
| April 2023 - May 2024 | 575 |
| June 2024 - July 2025 | 1,224 |
Alarmingly, half of these complaints remained unaddressed, indicating significant issues with Rapido's customer service. The majority of grievances centered around:
- Overcharging
- Non-refunds
CCPA's Directives
In response to these findings, the CCPA has issued several directives to Rapido:
- Immediate discontinuation of the misleading advertisements
- Reimbursement to affected consumers
- Submission of a compliance report within 15 days
Implications for Rapido and Consumers
This penalty serves as a stark reminder to tech-based service providers about the importance of transparent and honest advertising. For Rapido, the fine and the directives could lead to:
- Financial impact from the fine and potential reimbursements
- Necessary revisions to their marketing strategies
- Potential loss of consumer trust
For consumers, this action by the CCPA underscores the importance of regulatory bodies in protecting their interests and ensuring fair practices in the rapidly evolving digital service landscape.
As the gig economy and tech-based services continue to grow, this case highlights the need for companies to balance aggressive marketing with ethical practices and transparency. It also serves as a call for consumers to be vigilant and aware of the terms and conditions associated with promotional offers in the digital age.
