How Guaranteed ‘Auto in 5 Minutes’ Ad Landed Rapido in a Soup with CCPA - Explained

Ride hailing platform Rapido has come under regulatory fire after the Central Consumer Protection Authority (CCPA) slapped a ₹10 lakh fine for publishing misleading advertisements and unfair trade practices. These ads include “Guaranteed Auto” and “Autor in 5 minutes or get ₹50”.

The authority has also ordered Rapido to ensure that any consumer who availed such offers, and still haven’t received the promised compensation shall be reimbursed in full. In addition, it also called these ads “false, misleading and unfair” to consumers. Hence, CCPA directed Rapido to discontinue these misleading ads with immediate effect.

During the investigation process, CCPA also found that “T&C Apply” in Rapido’s advertisement was written in extremely small and unreadable font. According to the company rules, the amount of ₹50 will not be paid in Indian rupees, but “Rapido coins”. And the benefit was “up to ₹50” not exactly ₹50.

These coins were redeemable only for Rapido bike rides and expired within seven days. The conditions significantly diminished the benefit of the offer and pushed users to avail another Rapido service within a limited timeframe. The company gave a misleading impression of assured value, influencing consumer choice.

“….the material limitation that the benefit was restricted to ‘up to Rs 50’, and that too only in the form of Rapido coins with a short validity, was either omitted or not disclosed with equal prominence. This concealment and lack of clarity rendered the advertisement deceptive, directly contravening the requirements under said Guidelines,” the authority said.

It is pertinent to note that guidelines for Prevention of Misleading Advertisements and Endorsements, 2022 states that disclaimers in ads shall not contradict the main claim, conceal material information, or be used to correct a misleading claim.

Rapido operates in over 120 cities and ran the misleading campaign for approximately 548 days in multiple regional languages. Many consumer complaints relate to service deficiencies, non-refunds, overcharging and failure to provide promised services, with most grievances remaining unresolved despite being shared with the company.

The CCPA urged consumers to be cautious about advertisements making "guaranteed" or "assured" promises without clear conditions.

Consumers facing misleading advertisements can call the National Consumer Helpline at 1915 or use the NCH app or website to file complaints.