CCPA Slaps Rapido with Rs 10 Lakh Penalty for Misleading Ads

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

Rapido's promotional claims, such as 'Auto in 5 minutes or Get Rs 50,' were deemed false by the CCPA, which also instructed the company to reimburse customers who did not receive the promised compensation. The watchdog noted that disclaimers in the ads were unreadably small.

An investigation revealed the 'Rs 50' benefit was actually 'Rapido coins' tied to stringent conditions, compelling users to make another purchase. Complaints against Rapido increased notably in recent months, prompting the CCPA to order an immediate stop to the misleading advertising campaign.

(With inputs from agencies.)