Ola Electric Gets Notice from Consumer Protection Authority on Misleading Ads, Unfair Trade Practices
Moneylife Digital Team 08 October 2024
Amidst rising complaints and share price drops, Ola Electric Mobility Ltd has received a show-cause notice (SCN) from the central consumer protection authority (CCPA) due to increased consumer complaints. The SCN cites alleged violations of consumer rights, misleading advertising and unfair trade practices.
 
In a regulatory filing, Ola Electric says, "The Company has received the SCN vide email on 7 October 2024. The Company will file a reply to the SCN before the CCPA. Currently, the SCN has no impact on the financial, operational or other activities of the company. Furthermore, the SCN which is issued by the CCPA does not impose any penalties or financial fines."
 
The CCPA notice follows a 9% drop in Ola Electric's share price on Monday, 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)
 
Amidst the online exchange of words between the duo, the plight of Ola Electric customers resurfaced. 
 
In a post on X, Vinay Kumar Gupta (@vinayvnss) says, "Very very worst condition of Ola Service Centre Varanasi. You can see the condition of Ola service center. I am facing many issues but no one cares in Ola Service Centre."
 
Sharing a photo, Satvik Mishra (@satvikkm) says, "Current Condition Of @OlaElectric Jagatpura, Jaipur Service Centre! All These Vehicles are waiting for the service from months & no one has even tried to handle them."
 
 
Another customer, Pivar_Indorii (@NilimpDadhich) says, “Welcome to the worst service provider of the decade. Everyday i notice more than 50 people and 70+ scooters outside Ola Electric service centre. @bhash only launches new products but cannot improve their after sales service. Don’t buy ola products they are worst @OlaElectric.”
 
 
Vishal Verma (@VishalVerma_9) posted a video saying, “Ola EV Customers in Karnataka setting Ola Showroom on fire for not servicing their vehicle since month meanwhile their CEO Bhavish Aggarwal is busy trolling Kunal Kamra for bringing facts in public, Peak Arrogance!”
 
 
Ola Electric's flagship S1 series EV scooter has turned out to be a nightmare for several customers as they continue to face issues like malfunctioning hardware and glitching software even from day one after purchase.
 
Media reports say Ola Electric receives around 80,000 monthly complaints, overwhelming its service centres. On peak days, complaints rise to nearly 7,000.
 
Last week, Pramendra Tomar, company secretary and compliance officer of Ola Electric, resigned. 
 
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