Centre directs Ola to let consumers choose preferred refund mode as complaints rise

New Delhi: The government on Sunday directed Bhavish Aggarwal-run Ola to implement a mechanism allowing consumers to choose their preferred method of refund, and to provide consumers with a bill or receipt or invoice for all auto rides booked through its platform.

The Central Consumer Protection Authority (CCPA) directed the ride-hailing platform to develop a mechanism providing choices to consumers regarding refund mode -- either directly to their bank account or via coupon -- during the grievance redressal process.

As per information on the National Consumer Helpline (NCH), 2,061 complaints have been registered against Ola from January 1, 2024, till October 9.

The top categories of complaints included higher fares charged from consumers than what was shown at the time of booking the ride; non-refund of the amount to the consumer; driver asking for extra cash and driver not reaching the correct location or dropping at an incorrect location.

The regulator 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.

"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," said the CCPA Chief Commissioner Nidhi Khare.

According to the regulator, 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.

CCPA's intervention has led to some consumer-centric changes in the Ola app like the name, phone number and e-mail of the grievance officer and nodal officer are mentioned in the support section of the website. The cancellation fee amount is now clearly mentioned on the ride-booking page.

Meanwhile, Ola Electric has received a show-cause notice from the CCPA over poor conditions at its service centres and rising complaints regarding its electric two-wheeler, asking the company to reply within a timeline of 15 days.