India’s Central Consumer Protection Authority has imposed a fine of ₹10 lakh on Rapido, or Roppen Transportation Services Pvt. Ltd., for misleading ads and unfair trade practices, the Union Ministry of Consumer Affairs said on Thursday. Additionally, the bike taxi operator has been told to reimburse customers who used the company’s ‘Auto in 5 minutes or Get ₹50’ offer but did not receive the promised compensation.

According to the data from the National Consumer Helpline, complaints against Rapido surged to 1,224 between June 2024 and July 2025, compared to 575 complaints in the previous 14 months. That prompted an investigation.

The CCPA found that Rapido’s ads—‘Auto in 5 minutes or Get ₹50’ and ‘Guaranteed Auto’— were false and misleading. The disclaimers associated with these campaigns were displayed in extremely small and unreadable font. The promised ₹50 benefit was not actual currency but “Rapido Coins” worth “up to ₹50”, which could only be used for bike rides and expired within seven days. Even then, the assurance was offered by individual drivers, not Rapido itself—an attempt to shift liability away from the company.

“Such restrictions materially reduced the value of the offer and effectively compelled consumers to use another service from Rapido within an unreasonably short time,” the consumer affairs ministry said in a statement.

The CCPA has ordered Rapido to discontinue the misleading advertisements immediately.

What Are The Rules

According to the ‘Guidelines for Prevention of Misleading Advertisements and Endorsements 2022’, disclaimers cannot contradict main claims or conceal material information. The CCPA said Rapido’s ads violated these requirements by omitting key limitations without equal prominence.

Rapido operates in over 120 cities and ran the misleading campaign for 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 ads making “guaranteed” or “assured” promises without clear conditions. Consumers facing misleading ads can call the National Consumer Helpline at 1915 or use the NCH app or website to file complaints.

Bike Taxis Are Back

Meanwhile, bike taxi services resumed in Bengaluru after two months, after the Karnataka High Court called the state government’s rationale behind the ban as “thin” and “legally untenable”.

Bike taxis are not a luxury but a necessity, especially for last-mile mobility, Chief Justice Vibhu Bakhru said in court. Such two-wheeled public transport is operational in 13 other states and recognised as a legal and vital form of urban mobility.

The Karnataka High Court also rejected the state government’s claim that bike taxis are barred under the Motor Vehicles Act, 1987. “Lack of regulation cannot justify a blanket ban that deprives people of their ‘Right to Livelihood’ under Article 19(1)(G).”