CCPA directs Ola Cabs to offer refund via bank transfer or coupon

Ride-hailing services platform Ola has been instructed by the Central Consumer Protection Authority (CCPA) to provide consumers with a clear option of refund to choose either to their bank account or through a coupon when resolving complaints. The authority found that Ola, under its ‘no-questions-asked’ refund policy, only provided coupon codes for future rides without giving customers the option for a bank transfer. This, according to the Ministry of Consumer Affairs, violated consumer rights as the policy shouldn’t push customers to use the service again just to claim a refund.

Additionally, CCPA chief commissioner Nidhi Khare directed Ola to issue receipts or invoices for all auto rides booked through the platform to ensure better transparency. The authority noted that Ola's app currently does not provide invoices for auto rides, citing changes in service terms, which was deemed an ‘unfair trade practice’ under the Consumer Protection Act, 2019. "Further, CCPA observed that if a consumer attempts to access 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.'"

“Unfair trade practice means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, namely:—not issuing bill or cash memo or receipt for the goods sold or services rendered in such manner as may be prescribed,” it states.

So far this year, 2,061 complaints have been filed against Ola cabs, primarily related to higher fare charges from consumers than the booking amount and non-refunded amounts. Other issues included drivers asking for extra cash and drivers not reaching the correct location while pickup and drop services.

Last week, the CCPA issued a show cause notice to Ola Electric, India’s leading electric scooter manufacturer, for allegedly violating consumer rights, providing misleading advertisements, and engaging in unfair trade practices. Ola Electric stated that the CCPA has allowed the company 15 days to respond to the show cause notice, and it plans to submit its reply along with supporting documents within this period.

The company clarified that the show cause notice does not currently affect its financial, operational, or other activities, and it does not impose any penalties or fines.

In September, Ola Electric reported sales of 23,965 electric scooters, an 11% decrease from the 26,928 units sold in August. This decline follows a significant 34% drop in Vahan registrations the previous month for the company led by Bhavish Aggarwal.