The Central Consumer Protection Authority (CCPA) has instructed Ola, to implement a consumer-friendly mechanism allowing customers to choose their preferred refund method. According to the Ministry of Consumer Affairs, Food and Public Distribution, consumers will now have the option to receive refunds either directly to their bank accounts or via coupons, a significant change from Ola’s previous policy.
The directive, aimed at enhancing consumer rights and service transparency, was issued by CCPA’s Chief Commissioner Nidhi Khare. The CCPA’s intervention came after observations that Ola’s “no-questions-asked” refund policy was solely offering coupon codes for future rides without providing a clear choice to consumers.
This practice was found to potentially infringe on consumer rights, as it could incentivize consumers to book additional rides rather than offering a direct monetary refund.
The authority emphasized that a fair refund policy should not unduly push consumers to utilize services again but should instead empower them with a choice.
Additionally, the CCPA took issue with Ola’s policy regarding invoices for auto rides. It was found that the app displayed a message stating, “Customer invoice for Auto rides will not be provided due to changes in Ola’s auto service T&Cs,” when customers attempted to access invoices.
The CCPA deemed this practice as an “unfair trade practice” under the Consumer Protection Act, 2019, which mandates issuing a bill, receipt, or cash memo for services rendered.
Following CCPA’s regulatory intervention, Ola has introduced several consumer-centric changes to its platform aimed at enhancing transparency and consumer trust.
One significant change is the display of grievance officer and nodal officer details. The names, phone numbers, and email addresses of the grievance and nodal officers are now prominently listed in the support section of Ola’s website.
Additionally, the permitted time for ride cancellation, as per Ola’s policy, is now displayed at the time of booking, with the cancellation fee clearly mentioned.
Ola has also added a new acceptance screen for drivers showing both the pickup and drop-off locations to avoid confusion. To improve user experience, additional reasons for canceling rides have been provided to consumers.
Furthermore, details such as base fare, per-kilometer fare, and pre-wait charges are now publicly displayed, ensuring consumers have access to important fare information before booking a ride.
In an effort to enhance driver experience, Ola has issued communications encouraging drivers to accept digital payments and switch on the air conditioning as needed. The company has also adjusted the payment cycles for drivers to ensure timely payments.
The CCPA’s directive comes amid a significant number of complaints registered on the National Consumer Helpline (NCH). From January 1, 2024, to October 9, 2024, a total of 2,061 complaints were filed against Ola, covering issues such as higher fares charged than initially displayed at the time of booking, non-refund of amounts to customers, drivers requesting extra cash payments, and incorrect drop-off or pickup locations.