Misleading Ads Costly for Rapido: ₹10 Lakh Fine Over a ₹50 Cashback Trick

Rapido, one of the most popular bike-taxi services in Indian cities, has landed in trouble for misleading advertisements. The Central Consumer Protection Authority (CCPA) has slapped a ₹10 lakh fine on the company and directed it to refund money to customers.

Why the penalty?

Rapido had rolled out several offers, including promises like “Auto in 5 minutes” and “₹50 cashback”. But customers complained that these promises never matched reality. Instead of real cashback, Rapido offered “coins” that could only be used in the next ride within 7 days, which CCPA ruled as misleading advertising.

Complaints piling up

Since June 2024, customers have been filing complaints about Rapido, citing issues such as:

• Cashback not being credited properly

• Refunds not processed

• Drivers’ behavior

• Rides not arriving on time

Many of these grievances remain unresolved, further worsening Rapido’s credibility.

CCPA’s strict action

• Fine of ₹10 lakh imposed

• Rapido ordered to stop all misleading advertisements immediately

• Mandatory refund of ₹50 cashback in real money to all affected users

• Compliance report to be submitted within 15 days

This case sends a strong message that companies can no longer lure customers with false promises—misleading ads can now come at a very heavy cost.