'Auto In 5 Min Or Get Rs 50': Rapido’s Big Promise Turns Into A Rs 10 Lakh Fine

In a significant crackdown on unfair trade practices in the digital economy, the Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on Rapido (Roppen Transportation Services Pvt. Ltd.) for publishing misleading advertisements and engaging in deceptive business practices.

The authority has further directed the Bengaluru-based ride-hailing platform to refund compensation to all consumers who availed the “AUTO IN 5 MIN OR GET ₹50” offer but did not receive the promised benefit.

Misleading Ads Under Scrutiny
The CCPA took cognisance of Rapido’s advertisements, which prominently promised users either an auto within five minutes or a ₹50 compensation, as well as its “Guaranteed Auto” campaign.

After a detailed probe, the regulator found these advertisements to be “false, misleading and unfair” and ordered their immediate discontinuation.
According to data from the National Consumer Helpline (NCH):
575 complaints were filed against Rapido between April 2023 and May 2024.
1,224 complaints were recorded between June 2024 and July 2025.

The steep rise in complaints, many of which remained unresolved, highlighted consumer dissatisfaction and prompted CCPA to step in.

Deceptive Terms and Conditions
CCPA’s investigation revealed that Rapido’s advertisements were backed by disclaimers that contradicted the main claims. For instance, while the ad promised Rs 50 compensation, the fine print revealed that the benefit was not real money but “Rapido coins.”
The coins were capped at “up to Rs 50”, not a flat amount.
They could be redeemed only for Rapido bike rides.
They carried a validity of just seven days.

Such restrictions, the authority said, “materially reduced the value of the offer” and compelled users to spend again on the platform within a short period.
Further, while the headline claim suggested that Rapido, the Terms and Conditions offered the guarantee stated that the liability rested on individual drivers (captains) — an attempt to shift responsibility away from the company.

Read More - HAL Share Price In Cruise Mode After Rs 62,000 Cr Order For 97 Tejas Jet
Violation of Advertising Guidelines
The regulator cited the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022, which prohibit advertisers from:
Contradicting main claims through disclaimers.
Concealing material information.
Correcting misleading claims in fine print.

The CCPA held that Rapido’s campaigns clearly violated these guidelines. The claim “Auto in 5 min or get Rs 50” created the impression of an assured payout, but the material limitation of “coins up to Rs 50” with restricted use was either omitted or not disclosed with equal prominence.

Complaints Reflect Pattern of Consumer Grievances
Beyond misleading ads, the NCH data reflected a wider pattern of service-related complaints against Rapido.
Common grievances included:
Non-refund of paid amounts.
Overcharging of fares.
Failure to provide promised services.
Non-fulfillment of the guaranteed 5-minute service.

“Most of these grievances remain unresolved despite being shared with Rapido,” the CCPA observed, stressing that the platform had failed to address consumer concerns adequately.

Scale of Misleading Campaign
Rapido currently operates in over 120 cities across India. The misleading campaign was actively run for nearly 1.5 years (around 548 days) and in multiple regional languages, amplifying its reach and potential consumer impact.

Given the wide scale and prolonged duration of the ads, the CCPA, empowered under Sections 10, 20, and 21 of the Consumer Protection Act, 2019, found it necessary to act to safeguard consumer rights.

CCPA’s Mandate and Enforcement
The Central Consumer Protection Authority, established under Section 10 of the Consumer Protection Act, 2019, is mandated to:
Protect consumer rights.
Curb misleading advertisements.
Address unfair trade practices.

In line with these powers, the authority imposed the penalty on Rapido and issued directions to discontinue misleading advertisements immediately.