Consumer Protection Authority Asks Ola To Provide Refund Choices, Ride Bills to Customers

Moneylife Digital Team 18 October 2024

Investor Interest

In a landmark decision, the central consumer protection authority (CCPA) has directed Ola, a leading online ride-hailing platform, to implement a mechanism allowing consumers to choose their preferred method of refund—either directly to their bank account or via coupon—during the grievance redressal process. Additionally, Ola has been instructed to provide consumers with a bill, receipt, or invoice for all auto rides booked through its platform, ensuring greater transparency and accountability in its services.

CCPA observed that whenever a consumer raised any grievance on the Ola app, as part of its no-questions-asked refund policy, Ola only provided a coupon code, which could be used for the next ride, without giving a clear choice to the consumer to opt between a bank account refund or a coupon. The authority says this violates consumer rights, and the no-questions-asked refund policy does not mean the company incentivises people to use this facility to take another ride.

Further, CCPA observed that if a consumer attempts to access an invoice for auto rides booked on Ola, the app shows the message ‘Customer invoice for auto rides will not be provided due to changes in Ola's auto service T&Cs.’

Not issuing a bill or invoice or receipt for the goods sold or services rendered constitutes an 'unfair trade practice' under the Consumer Protection Act, 2019, the authority says.

As per information on the national consumer helpline (NCH), 2,061 complaints have been registered against Ola from 1 January 2024 to 9 October 2024. The top categories of complaints include – higher fares charged from consumers than shown when booking the ride, non-refund of the amount to the consumer, driver asking for extra cash and driver not reaching the correct location or dropping at an incorrect location.

CCPA says its intervention has led to several consumer-centric changes in the Ola app. It includes sharing details of the grievance officer and nodal officer under the support section on Ola. The ride-hailing platform now prominently displays the time permitted for cancellation as per the cancellation policy while booking a ride.

Ola is also mentioning the amount of cancellation fee on the ride-booking page so that the consumer is clearly aware of the amount which could be charged for cancelling the ride before she proceeds to cancel.

The ride-hailing platform also added acceptance screens for drivers which provide pick-up and drop locations. Ola also added more reasons for customers to cancel the booking.

Last week, CCPA issued a show-cause notice (SCN) to Ola Electric Mobility Ltd citing alleged violations of consumer rights, misleading advertising and unfair trade practices. (Read: Ola Electric Gets Notice from Consumer Protection Authority on Misleading Ads, Unfair Trade Practices)

The CCPA notice follows a 9% drop in Ola Electric's share price, spurred by the company founder, chairman and managing director (CMD) Bhavish Aggarwal's spat with comedian Kunal Kamra on X over service quality issues of its electric scooters. (Read: Ola Electric: Bhavish Aggarwal's Brattish Response Ignites Consumer Fury, Triggers 8.3% Stock Dip)

Comments

User

chandragupta

5 months ago

Before you book a ride, at least three cabs are shown available in the vicinity of 2 minutes. When you book, it says cab will arrive in 8 minutes. The cab actually arrives after 12 - 15 minutes. When the message “your driver has arrived” comes, the cab is yet to arrive.

angelo.extross

5 months ago

One genuine customer grievance seems to have been missed, viz Cancellation of Rides after accepting the booking. Customers, especially at airports, railway stations, etc. are harassed and inconvenienced by multiple cancellations by drivers. As of now there is no remedy.