Why in news?
The Central Consumer Protection Authority (CCPA) has imposed a penalty on the bike‑taxi aggregator Rapido for charging a “platform fee” without clearly informing customers. This action underscores the importance of fair business practices under the Consumer Protection Act 2019.
Role of the CCPA
The CCPA was established to promote and enforce consumer rights. It has powers to investigate unfair trade practices, order the recall of unsafe goods or services, impose penalties and direct refunds. Its work is crucial for building confidence in the market economy.
Key issues in the Rapido case
- Rapido levied a small fee labelled as a platform or convenience charge. The CCPA found that the company did not adequately disclose this fee or explain its purpose.
- The authority ruled that such hidden charges are an unfair trade practice because consumers cannot make an informed choice.
- Rapido was directed to stop levying the fee and pay a penalty. The company was also asked to refund the amount collected from customers.
Lessons for businesses
Companies should clearly inform customers of all fees, taxes and charges before payment. Transparent billing builds trust and complies with consumer laws. The Rapido case serves as a reminder that digital platforms are subject to the same standards of fairness as offline businesses.