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Online motorbike taxi and auto-rickshaw hailing platform Rapido has been slapped with a penalty and ordered to issue refunds to some of its customers. The Central Consumer Protection Authority (CCPA) -- the country's consumer affairs regulator -- has imposed a penalty of Rs 10 lakh on Rapido over allegedly misleading advertisements. 

According to CCPA -- which functions under the Ministry of Consumer Affairs, Food and Public Distribution, the said ads ran in more than 120 cities for 548 days. The ads were in multiple languages, according to the regulator. 

These ads allegedly promised “guaranteed service” and “cashback benefits", according to the authority. 

The action comes at a time when the country's digital platforms market is expanding rapidly, driven by factors such as strong internet penetration, widespread smartphone adoption, and booming e-commerce.

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According to CCPA, Rapido exaggerated the reliability of its services and hid its key terms and conditions, hence misleading consumers. 

The regulator had received complaints flagging the platform's claims, like "guaranteed auto” and “auto in 5 minutes or Rs 50”.

Between June 2024 and July 2025, 1,224 complaints were filed against Rapido on the National Consumer Helpline (NCH), more than double than 575 complaints registered between April 2023 and May 2024. 

These complaints included issues such as overcharging, refund delays and unfulfilled cashback promises.

"It is evident from the above figures that the number of consumer complaints against the opposite party has increased substantially over the subsequent period. Furthermore, 50 per cent of these grievances/complaints remained unaddressed by the opposite party," noted the CCPA order, dated August 20. 

Directing the platform to withdraw all misleading ads immediately, CCPA has ordered Rapido to refund an amount of Rs 50 to every impacted user. 

CCPA has also ordered Rapido to submit a compliance report to it within the next 15 days. 

CCPA's main function is to protect, promote and enforce consumer rights.

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