Cashback Scam Exposed: Rapido Slammed with ₹10 Lakh Fine for Misleading Ads, Ordered to Refund Customers

New Delhi (The Uttam Hindu): Bike-taxi service provider Rapido has landed in serious trouble for running misleading advertisements that tricked customers. The Central Consumer Protection Authority (CCPA) has imposed a heavy penalty of ₹10 lakh on the company and ordered it to immediately stop all false advertisements. Moreover, Rapido has been directed to refund the actual cashback amount to affected consumers.

What’s the issue?

To expand its reach in urban areas, Rapido had been aggressively promoting ads such as “Guaranteed Auto,” “Auto in 5 Minutes,” and “₹50 Cashback.” Thousands of consumers were attracted to these offers, but the promises were not fulfilled. Complaints against Rapido began piling up since June 2024.

The Cashback Scam

The biggest deception was found in the ₹50 Cashback scheme. Investigations revealed that Rapido advertised it as real cashback, but customers were instead given “coins” that could only be used for the next ride and expired within just 7 days. The CCPA called it a direct fraud and an unfair trade practice.

Complaints Ignored

Consumers also reported multiple issues — rides not available on time, promised cashback not given, rude driver behavior, and refunds never processed. Shockingly, more than half of these complaints went unresolved.

CCPA’s Tough Action

Taking note of the complaints, the CCPA declared that Rapido was misleading customers. The authority not only imposed a ₹10 lakh penalty but also issued strict orders:

Rapido must immediately stop airing all misleading advertisements.

Customers must receive real ₹50 cashback instead of coins.

A compliance report must be submitted within 15 days.

The CCPA stated this decision serves as a strong warning to all companies that attempt to lure consumers through false promises and hidden conditions.