New Delhi: The Central Consumer Protection Authority (CCPA) has directed ride-hailing platform Ola to make consumer-friendly adjustments, which include providing refund options and issuing receipts for auto rides, the regulator said on Sunday.
The CCPA, headed by Chief Commissioner Nidhi Khare, noted that Ola's no-questions-asked refund policy only issued coupon codes for future rides, failing to offer consumers the option for direct refunds to their bank accounts. "This (practice) violates consumer rights," the CCPA said in a statement. "The no-question-asked refund policy cannot mean that the company incentivises people to simply use this facility for taking another ride."
CCPA mandated Ola to issue bills or invoices
The CCPA also mandated Ola to issue bills or invoices for all auto rides booked through its platform, citing the absence of such documentation as an "unfair trade practice" under the Consumer Protection Act, 2019.
After the CCPA's intervention, Ola has introduced several changes, such as providing contact information for grievance and nodal officers on its website, clearly outlining cancellation policies and fees during the booking process, offering more options for ride cancellation reasons, and making fare component breakdowns more accessible to the public.
The other changes implemented were showing the address of both pickup and drop locations to drivers and revised payment cycles for drivers for swift payment.
CCPA reported 2,061 complaints against Ola since Jan
The CCPA received 2,061 complaints against Ola between January and October 2024, with the main concerns being overcharging, delays in refunds, and issues related to drivers. "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," the regulator stated.
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.
(With PTI inputs)
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