In a landmark decision, 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—either directly to their bank account or via coupon—during the grievance redressal process.
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 Authority is headed by Chief Commissioner Nidhi Khare.
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 that 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, CCPA said.
Further, 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.’
CCPA said it was observed that not issuing bills or invoices or receipts for the goods sold or services rendered constitutes an ‘unfair trade practice’ under the Consumer Protection Act, 2019.
In addition to the above, CCPA’s intervention has led to the following consumer-centric changes in the Ola app –
- Previously, no details of the grievance officer and nodal officer were prominently visible on the website. Now, name, phone number and e-mail of the grievance officer and nodal officer are mentioned, in support section of the website.
- Permitted time of cancellation as per cancellation policy, now prominently displayed at the time of booking ride.
- The amount of 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.
- A new acceptance screen was added for drivers where address of both pickup and drop location is shown to drivers.
- To avoid inconvenience and confusion, more reasons are added against which the consumer wishes to cancel the ride.
- A list of components that constitute the total fare added is now publically available such as base fare, per km fare, pre-wait charges, etc.
- Communications were issued to drivers to encourage taking digital payments and switching on AC.
- Revised payment cycles for drivers so that they get payment swiftly.
As per information on the National Consumer Helpline (NCH), a total of 2,061 complaints have been registered against Ola from January 01, 2024, to October 09, 2024. The top categories of complaints include –
- Higher fare charged from the consumer than what was shown at the time of booking the ride
- Non-refund of the amount to the consumer
- Driver asking for extra cash
- The driver did not reach the correct location or dropped at an incorrect location
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, reflecting the CCPA’s commitment to ensuring a fair and secure experience for all consumers on e-commerce platforms, CCPA added.
The move comes as the CCPA increases scrutiny of digital platforms to protect consumer interests in the rapidly growing e-commerce and ride-hailing sectors.
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