Rapido Fined ₹10 Lakh By Consumer Watchdog For Misleading Ads, Unfair Practices

The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on ride-hailing platform Rapido over alleged unfair trade practices and misleading advertisements, the government said on Tuesday.

The action follows a broader examination of cab and bike-taxi aggregator platforms in India, with the consumer watchdog looking into practices including pre-ride tipping and dynamic pricing.

CCPA Examines Ride-Hailing Platforms

The consumer authority's action against Rapido is part of a sector-wide review of practices followed by companies operating in the country's app-based taxi and bike-taxi market.

The CCPA is examining whether consumers are being provided clear and accurate information about fares and other charges before booking rides.

The investigation also covers the manner in which platforms use pricing mechanisms that can cause fares to change depending on factors such as demand.

Rapido Penalised Over Advertisements And Practices

According to the government, the CCPA found grounds for action against Rapido over misleading advertisements and unfair trade practices.

The ₹10 lakh penalty has been imposed by the consumer watchdog as part of its regulatory action.

The CCPA is headed by Chief Commissioner Nidhi Khare, with Anupam Mishra serving as Commissioner.

The authority's proceedings are aimed at ensuring that consumers receive transparent information while using digital ride-hailing services.

Uber And Ola Also Under Examination

The CCPA's wider review has not been limited to Rapido. The authority is also examining the practices of other major ride-hailing companies operating in India.

The government said the examination of Uber and Ola is currently ongoing.

The review is focused, among other things, on issues related to pre-ride tipping and dynamic pricing, which have increasingly become part of the consumer experience on app-based transportation platforms.

The ongoing examination means that no final findings have been announced against Uber or Ola as part of this particular exercise.

Focus On Consumer Protection

The regulatory action comes as authorities continue to scrutinise digital platforms over pricing transparency and consumer rights.

For users, dynamic pricing can result in fares changing between the time a ride is searched and when it is booked. Pre-ride tipping, meanwhile, allows passengers to add a tip while arranging a ride rather than after completing the trip.

The CCPA's sector-wide examination is intended to assess whether such practices comply with consumer-protection requirements.

The ₹10 lakh penalty against Rapido represents the action announced so far in the matter, while the examination of other major ride-hailing platforms remains underway.

ABOUT THE AUTHOR

Susmita Modak

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Always love to raise the unraised matter. In a world of worries, I am always ready to come over my comfort zone and taking the step ahead of spreading awareness.

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