CCPA Orders Rapido To Pay Rs 10 Lakh For Misleading Ads, To Reimburse Consumers

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Posted by AI on 2025-08-21 08:29:47 | Last Updated by AI on 2025-08-21 11:00:59

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The Consumer Affairs Department of the Government of Karnataka has fined ride-sharing service Rapido a whopping Rs 10 lakh for misleading consumers through deceptive advertisements, a statement from the Commissioner of the Department has revealed.

The fine imposition comes after an investigation found that the company's claims - including "Auto in 5 min or Get Rs 50" and "Guaranteed Auto" - were misleading and false, and therefore, unfair to consumers.

The Commissioner ordered the company to cease and desist from such deceptive practices and to provide compensation to affected consumers.

In a statement, the Commissioner said that the action against Rapido was part of the Department's increased efforts to protect consumers from such unfair practices and that the maximum penalty allowable under the relevant laws would be imposed on any company found guilty of such misdeeds in the future.

The Department has also advised consumers who have been adversely affected by such misleading ads to approach the Consumer Affairs Department and file a complaint with supporting evidence to help the Department better understand the extent of the problem and take further action, if necessary.

The move has been welcomed by some as a long-awaited step towards holding tech companies accountable for their marketing practices, but others have argued that the fine is too little too late, calling for stricter regulations and higher penalties to truly serve as a deterrent.

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