The Central Consumer Protection Authority (CCPA) has directed riding-hailing platform Ola to offer choice to consumers for get refunds directly in their bank accounts besides coupons as part of its grievance redressal process.
It has also directed Ola to provide a bill, receipt or invoice for all auto rides booked through its platform, ensuring greater transparency and accountability in its services.
CCPA observed that the whenever consumer raised any grievance on the Ola app, “as part of its no-question-asked refund policy”, Ola only provided a coupon code which can be used for the next ride.
“The Authority has ruled 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.”
It also observed that the Ola app displays a message that states the ‘Customer invoice for Auto rides will not be provided due to changes in Ola’s auto service T&Cs.’
The Authority said not issuing bill or invoice or receipt for the goods sold or services rendered constitutes to an ‘unfair trade practice’ under the Consumer Protection Act, 2019.
The Authority said in a statement that the National Consumer Helpline (NCH) received 2061 complaints against Ola from January 1 to October 9 this year.
Consumers have flagged various issues in their complaints including higher fare charged than what was shown at the time of booking, non-refund of amount and drivers asking for extra cash among others.
CCPA said its intervention has led Ola to make several changes in its app. This include displaying details about its Grievance officer and nodal officer in support section, outlining various components of the total fare, clear details regarding cancellation policy including cancellation fee besides new acceptance screen for drivers displaying pickup and drop location of rides and also a revised payment cycles for swifter payments.
“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. These measures aim to empower consumers, enhance trust, and improve service provider accountability,” it added