Why was Rapido fined? Watchdog flags 'Guaranteed Auto', 'Rs 50' ad

Rapido, the bike-hailing service, has gained immense popularity because of its affordable rates and accessibility. The bike taxi serviceis also popular for faster transportation in traffic-afflicted cities. However, a consumer watchdog recently fined the company Rs 10 lakh for resorting to misleading advertisements to attract customers. The court found the advertisement campaigns misleading and asked the firm to immediately halt their transmission to the public. Here's what happened.

The Central Consumer Protection Authority (CCPA), India's top consumer watchdog, slapped a fine of Rs 10 lakh. It took a suo motu note of two campaigns of the service-- 'Guaranteed Auto' and 'Auto in 5 minutes or get Rs 50'.

Thebody found that the advertisement ran for around 1.5 years in 120 cities. It was published in multiple languages.

Finding it guilty of unfair trade practices, Rapido was asked to cough up the fine.

The authority found that many people didn't get the auto in 5 minutes and weren't paid Rs 50 as promised in the advertisement. It said such people must get the promised amount.

"The opposite party shall ensure that any consumer who availed the “AUTO IN 5 MIN OR GET Rs 50″ offer and did not receive the promised Rs 50 compensation shall be reimbursed the said amount in full without any further delay or condition,” CCPA said.

It said that between April 2023 and May 2024, the National Consumer Helpline had received 575 consumer complaints linked to non-refund of amounts, overcharging, and issues in services. The authority found that Rapido made no efforts to resolve the grievances.

CCPA said in its order that Rapido displayedan "apathetic attitude" even though many opportunities were provided to them to negate the findings.

It said to safeguard consumer interest, Rapido must be penalised for "unfair trade practice, false or misleading advertisement".