CCPA directs Ola to offer direct refunds to end unfair trade practices
by KalingaTV Bureau · KalingaTVNew Delhi: The Central Consumer Protection Authority (CCPA) has directed the ride-hailing platform Ola to offer customers a choice between a direct bank refund or a coupon redeemable against booking another ride.
Reportedly this decision was made after 2,061 complaints were filed against Ola with the National Consumer Helpline. The CCPA deemed Ola’s practice of only providing coupons as an “unfair trade practice” under the Consumer Protection Act.
Ola offers only coupons as refunds constitutes to its customers. And whenever a customer 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”.
As per the CCPA, this is an “unfair trade practice”. The authorities has directed the company to issue receipts, bills or invoices for all auto rides booked through its platform. This decision is being made to enhance transparency and accountability.
The Central Consumer Protection Authority (CCPA), led by Chief Commissioner and Consumer Affairs Secretary Nidhi Khare, observed that whenever a customer field a complaint on the Ola app, the company, as part of its no-question-asked refund policy, only provided a coupon code, which could be used for the next ride, without giving the customer a clear choice between a bank account refund and a coupon. As per CCPA, this violets consumer rights. The no-question-asked refund policy cannot force customers to use this facility for taking another ride.
The CCPA also noticed another “unfair trade practice” under the Consumer Protection Act. CCPA said 2,061 complaints against Ola were lodged with the National Consumer Helpline and most of the complaints were higher fare charged from a consumer than what was shown at the time of booking, non-refund of amount to consumer, driver asking for extra cash, and driver either not reaching the correct location or not dropping at correct location.
After the authorities’ direction, Ola has implemented several changes, including displaying contact details of grievance and nodal officers on its website, clearly mentioning cancellation policies and fees at the time of booking, adding more options for ride cancellation reasons, and publicizing fare component breakdowns.
Additionally, other changes implemented were displaying the pickup and drop location addresses to drivers, and revised payment cycles for drivers for swift payment.