Rapido Fined for Misleading Ads and Unfair Trade Practices

The Central Consumer Protection Authority fined ride-hailing platform Rapido Rs 10 lakh for misleading advertisements and unfair trade practices. The CCPA found Rapido's ads deceptive and imposed a penalty while directing the company to reimburse affected consumers. Complaints against Rapido surged, prompting the regulatory action.

The Central Consumer Protection Authority (CCPA) has slapped a fine of Rs 10 lakh on the ride-hailing service Rapido over misleading advertisements and unfair trade practices, according to a statement from the consumer affairs ministry released on Thursday.

The penalty comes after an investigation revealed that Rapido's campaigns, such as 'Auto in 5 minutes or Get Rs 50' and 'Guaranteed Auto,' were not only false but also designed to mislead consumers. In many cases, the promised Rs 50 compensation turned out to be non-cash 'Rapido coins,' which were both limited in usage and validity.

The CCPA ordered Rapido to discontinue these misleading advertisements immediately, highlighting that disclaimers were in small, unreadable fonts and did not adequately inform consumers. With consumer complaints on the rise and unresolved grievances, the authority has urged consumers to report false advertising through the National Consumer Helpline.

(With inputs from agencies.)