CCPA directs Ola cabs to provide refund options to its consumers

Over 2,000 complaints registered on NCH, authority asks platform to issue bills for auto rides

The Central Consumer Protection Authority (CCPA) on Sunday directed ride-hailing service provider Ola cabs to provide a clear choice to consumers to opt between a bank account transfer or a coupon when they seek refund during the grievance redressal process.

The regulatory authority observed that whenever a consumer raised any grievance on the Ola app, as part of its ‘no-question-asked’ refund policy, Ola only provided a coupon code, which could be used for the next ride. However, it did not provide any clear choice to the consumer to opt between a bank account refund or a coupon.

“It was observed that this violates consumer rights and the no-question-asked refund policy cannot mean that the company incentivises people to simply use this facility for taking another ride,” stated a release from the Ministry of Consumer Affairs.

CCPA Chief Commissioner Nidhi Khare also instructed Ola to provide consumers a bill or receipt or invoice for all auto rides booked through its platform, to ensure greater transparency and accountability in its services.

The authority further observed that if a consumer attempts to access an invoice for auto rides booked on the platform, the app does not provide any customer invoice due to a ‘change in auto service terms and conditions’.

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 release added.

A total of 2,061 complaints against Ola cabs have been lodged on the national consumer helpline (NCH) this year until October 9, of which the most are about higher fare charged from the booking time and non-refund of amount to consumers.

“Through its regulatory intervention, the CCPA has been steadfast in ensuring that Ola adheres to the legal framework established to secure the rights of consumers,” the CCPA stated.

This comes amid growing regulatory heat on Ola group of companies. Last week, the CCPA had issued a show cause notice to Ola Electric mobility for alleged violation of consumer right, misleading advertisement, and unfair trade practices as consumer complaints against the listed company grew to over 10,000 on the NCH.  

Within the scope
 

 

 Ola’s policy was deemed unfair as it only provided coupon codes without clear alternatives
 

 CCPA sought mechanism allowing consumers to choose their preferred method of refund
 

 Regulator directed the firm to issue bills or receipts for all auto rides booked via its platform 
 

 Over 2,000 complaints against Ola were lodged on the national consumer helpline this year, mainly regarding high fares and non-refunds