CCPA Reigns in Ola: Consumer-Friendly Overhaul Ordered

The Central Consumer Protection Authority has ordered ride-hailing service Ola to make consumer-friendly modifications, including refund options and receipt issuance. The CCPA found Ola's practices violated consumer rights due to limited refund choices and lack of ride documentation. Ola has complied with the regulatory directives by implementing these changes.

The Central Consumer Protection Authority (CCPA) has taken definitive action against popular ride-hailing platform Ola to implement changes more in line with consumer rights. The CCPA, under the leadership of Chief Commissioner Nidhi Khare, expressed concerns over Ola's refund policy that issued only coupon codes for future rides instead of offering actual bank account refunds.

Calling this practice a violation of consumer rights, the CCPA stressed that it unfairly incentivizes customers to use their service again without offering a true choice. Furthermore, the Authority mandated that receipts or invoices for all auto rides booked through the Ola platform must be issued, labeling the absence of such documentation as an 'unfair trade practice' under the Consumer Protection Act, 2019.

Post-intervention, Ola has rolled out several changes, such as making grievance and nodal officer contact information readily available on its website, clarifying cancellation policies, expanding ride cancellation reasons, and transparently breaking down fare components. They have also updated driver-facing systems for improved address visibility and sped-up payment cycles. From January to October 2024, the CCPA received 2,061 complaints against Ola, spotlighting issues like overcharging and refund delays.

(With inputs from agencies.)