“Auto In 5 Min Or Get Rs 50”: CCPA Fines Rapido Rs 10 Lakh For Misleading Ads

If you tried to book a ride on Rapido, the online ride-hailing platform, after seeing the notification of ‘AUTO IN 5 MIN OR GET Rs 50’, but neither got your ride in five minutes nor those Rs 50, you are not alone.

The Central Consumer Protection Authority (CCPA) recently imposed a penalty of Rs 10 lakh on Rapido for running advertisements that were found to be false and misleading. This action came after many consumers repeatedly complained regarding the company’s “AUTO IN 5 MIN OR GET Rs 50” and “Guaranteed Auto” offers.

What is the case?

This investigation by the consumer protection authority showed that Rapido’s claim of getting you an auto in 5 mins or Rs 50 was actually unfair, deceptive, and misleading. The offer appeared to assure customers of either quick service or guaranteed monetary compensation, but in reality, the so-called benefit was far more restricted.

Instead of actual cash, consumers were given “Rapido coins,” with a value of up to Rs 50.” These coins were not equivalent to Rs 50 in every case, could only be used for Rapido bike rides, and had a short validity of seven days.

Such terms, CCPA says, materially reduced the benefit and effectively forced customers into booking another ride within a week.

Worse, while the advertisement placed the guarantee on Rapido itself, the fine print claimed that the offer was extended by individual drivers and not by the company. This contradictory stance, combined with disclaimers printed in tiny, unreadable font, created a misleading picture for consumers.

Such ads that often hide key conditions and blatantly contradict the main claim are clearly prohibited under the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022.

And hence this campaign by Rapido, that ran actively for nearly 18 months across multiple languages and cities, fell afoul of these rules. CCPA noted that these ad campaigns are misleading for the consumers.

Complaints have been rising

The latest data from the National Consumer Helpline (NCH) shows that consumer frustration is growing because of such misleading advertisements.

The consumer protection authority revealed that between April 2023 and May 2024, 575 complaints were registered against Rapido. This number further rose sharply to 1,224 complaints between June 2024 and July 2025.

What were the top complaints? A majority of consumer grievances were regarding non-refunds, overcharging, and Rapido’s repeated failure in delivering the advertised “5-minute” auto guarantee.

Even though so many complaints were raised and escalated, consumers reported that many remained unresolved which further added weight to CCPA’s intervention in the matter.

What consumers need to watch out for?

CCPA’s order has highlighted a bigger issue with these misleading advertisements. It says that consumers are easily drawn to fake promises when they come packaged with bold words like ‘guaranteed,’ ‘assured,’ or ‘instant’. Because of these terminologies, they miss out on fine prints that drastically change the meaning of such promises.

Therefore, the authority has now urged the consumers to:

• Carefully scrutinise the disclaimers and T&Cs (short for terms and conditions) that are attached to such offers

• Be sceptical of compensation offers in ‘non-cash’ forms such as reimbursing the promised cashback or discount in form of coins or points which may carry specific expiry limits

• Lastly, the CCPA has asked consumers to report such misleading ads or unfair practices to the National Consumer Helpline by dialing 1915 or using the NCH App/website.

This Rapido case shows how companies cannot and should not hide behind their disclaimers or vague digital tokens when making big claims related to cashbacks or discounts in their ads. For consumers, too, this is a reminder that too-good-to-be-true offers are often served with hidden T&Cs.