New Delhi: The Central Consumer Protection Authority (CCPA) headed by Chief Commissioner Nidhi Khare has directed Ola, a leading online ride-hailing platform, to develop a mechanism providing choices to consumers regarding refund mode.
The CCPA told Ola 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, it instructed Ola to provide consumers either 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-question-asked refund policy, Ola only provided a coupon code which could be used for the next ride without providing a clear choice to the consumer to opt between a bank account refund or a coupon.
It stated that this violates consumer rights and that the no-question-asked refund policy cannot mean that the company incentivises people to simply use this facility for taking another ride.
Further, CCPA said 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.’ The CCPA noted that not issuing bills, invoices or receipts for the goods sold or services rendered constituted an ‘unfair trade practice’ under the Consumer Protection Act, 2019.
As per information on the National Consumer Helpline (NCH), a total of 2,061 complaints were registered against Ola from January 1, 2024, to October 9, 2024. The top categories of complaints included –
- Higher fare charged from the consumer than what was shown at the time of booking the ride
- Non-refund of the amount to the consumer
- Driver asking for extra cash
- The driver did not reach the correct location or dropped at an incorrect location
Through its regulatory intervention, the CCPA stated it has been “steadfast” in ensuring that Ola adheres to the legal framework established to secure the rights of consumers. It said these measures aimed to empower consumers, enhance trust, and improve service provider accountability, reflecting the CCPA’s commitment to ensuring a fair and secure experience for all consumers on e-commerce platforms.
CCPA’s intervention has also led to the following consumer-centric changes in the Ola app –
- Previously, no details of the Grievance officer and nodal officer were prominently visible on the website. Now, the Name, Phone number and e-mail of the Grievance officer and nodal officer are mentioned, in the Support section of the website.
- Permitted time of cancellation as per cancellation policy, now prominently displayed at the time of booking ride.
- The amount of cancellation fee amount is now clearly mentioned 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/he proceeds to cancel.
- A new acceptance screen is added for drivers where the address of both pickup and drop location is shown to drivers.
- To avoid inconvenience and confusion, more reasons are added against which the consumer wishes to cancel a ride.
- A list of components that constitute the total fare added is now publically available such as base fare, per km fare, pre-wait charges etc.
- Communications are issued to drivers to encourage taking digital payments and switching on air conditioners.
- Revised payment cycles for drivers so that they get payment swiftly.
– global bihari bureau
