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CCPA imposes penalty on Rapido-online ride for Misleading Advertisement | Current Affairs | Vision IAS
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CCPA imposes penalty on Rapido-online ride for Misleading Advertisement

Posted 22 Aug 2025

2 min read

Central Consumer Protection Authority (CCPA) took cognizance of the advertisements of Rapido that promised consumers “AUTO IN 5 MIN OR GET ₹50” and “Guaranteed Auto” which after examination were found to be false, misleading and unfair to consumers.

Ethical issues with Misleading Advertisements

  • Violation of rights based approach: Right to be informed, right to choose, and right to safety are violated due to it.
    • E.g., Red Bull gives you wings campaign offering specific functional benefits was slapped fines for misrepresentation.
  • Against utilitarianism: Misleading advertisement can lead to environmental harm leading to long-term harm to society.
    • E.g., Greenwashing case of Volkswagen's "clean diesel" campaign, which falsely advertised some vehicle as environmentally friendly.
  • Violates Kantian categorical imperative: Misleading ads consider humans as a means to an end i.e., profit maximisation.
  • Promotion of Harmful Social Biases: E.g., Fair and Lovely ads equating beauty with fair skin leading to racial biases. 
  • Health and safety risk: e.g., Johnson's Baby Powder was advertised despite potential health concerns.
    • JS Mill’s harm principle individual freedom of expression and commerce is acceptable only until it causes harm to others

Legal Frameworks to counter misleading advertisement 

  • Consumer Protection Act, 2019: Defines misleading advertisement and devise Punishment for misleading advertisement and empowers CCPA to investigate the same.
  • Guidelines for Prevention of Misleading Advertisements 2022 by CCPA.
  • Food Safety and Standards Act, 2006: Penalties for misleading advertisements related to food quality,
  • Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954: Prohibits advertisement claiming magical properties or unproven benefits.
  • Tags :
  • Central Consumer Protection Authority (CCPA)
  • Misleading Advertisements
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