The Central Consumer Protection Authority (CCPA) has directed Ola, a leading online ride-hailing platform, to implement a mechanism allowing consumers to choose their preferred method of refund.
During the grievance redressal process, the customers should get the option either directly to their bank account or via coupon.
Headed by Chief Commissioner Nidhi Khare, the authority said additionally, Ola has been instructed to provide consumers with a bill or receipt or invoice for all Auto rides booked through its platform, ensuring greater transparency and accountability in its services.
The 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 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.
Further, the CCPA observed 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.’
It was observed that 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.
Notably, CCPA’s intervention has also led to consumer-centric changes in the Ola app.
Previously, no details of Grievance officer and nodal officer were prominently visible on the website. Now, Name, Phone number and e-mail of Grievance officer and nodal officer are mentioned, in the Support section of the website.
Permitted time of cancellation as per cancellation policy, is now prominently displayed at the time of booking ride.
The 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 on cancelling the ride before she/he proceeds to cancel.
New acceptance screen is added for drivers where the address of both pickup and drop location is shown to the drivers.
In order to avoid inconvenience and confusion, more reasons were added against which consumers wish to cancel the rides.
List of components that constitute the total fare added, is now publicly available such as base fare, per km fare, pre-wait charges among others.
Communications are issued to drivers to encourage taking digital payments and switch on AC.
Also, the revised payment cycles for drivers are introduced so that they get payment swiftly.
According to the National Consumer Helpline (NCH), a total of 2,061 complaints have been registered against Ola from 1 January, 2024 to 9 October, 2024.
These complaints included higher fare charged from consumers than what was shown at the time of booking the ride; Non-refund of amount to the consumer; Driver asking for extra cash; Driver did not reach the correct location or dropped at incorrect location.