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CCPA slaps Rs 10 lakh fine on Rapido for misleading ads

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NEW DELHI: The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 10 lakh on ride-hailing platform Rapido for disseminating misleading advertisements and engaging in unfair trade practices, reports Dipak Dash. The action was taken suo motu following investigation into the company’s advertisement claim: “Guaranteed Auto. Auto in 5 mins or get Rs 50”.CCPA directed Rapido to immediately discontinue the advertisements and compensate consumers who weren’t given the promised cashback. Rapido said the terms and conditions were clear that customers would be eligible for coins “up to Rs 50 which could be redeemed against bike rides” on the platform” and the validity of such coins was for 7 days from the time it is credited to customer’s wallet.However, CCPA noted the advertisements did not include the term “up to”, and the “T&C Apply” disclaimer was barely visible.

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