CCPA directs Ola to offer consumer choice in refund mode and enhance transparency

The Central Consumer Protection Authority (CCPA) has directed Ola, the popular ride-hailing service, to introduce a mechanism allowing customers to choose their preferred method of refunds during the grievance redressal process. This option includes either a refund directly to their bank accounts or through coupons redeemable on future rides.

The intervention came after the CCPA, under the leadership of Chief Commissioner Smt. Nidhi Khare, observed that Ola's existing refund process only offered coupon codes without the choice of a direct bank refund, which the authority found to violate consumer rights.

Under Ola's no-questions-asked refund policy, consumers were only given ride coupons, an approach CCPA noted could unfairly push customers to take another ride instead of receiving their money back.

In addition, the CCPA highlighted an issue with Ola's invoicing practices for Auto rides. Consumers attempting to access invoices for these rides encountered a message stating that invoices were unavailable due to changes in Ola's terms and conditions.

The CCPA deemed this practice an "unfair trade practice" under the Consumer Protection Act, 2019, noting that all services rendered must be accompanied by proper receipts, bills, or invoices for transparency and accountability.

Key changes and enhancements to the Ola app

As a result of the CCPA’s intervention, Ola will now implement several consumer-focused updates:

Refund choices: Consumers can now select between a bank account refund or a coupon when processing refunds. Transparent invoicing: Ola is mandated to provide bills or invoices for Auto rides, promoting service transparency. Enhanced grievance process: Contact information for grievance and nodal officers is now prominently displayed on the app and website. Cancellation clarity: Details of the cancellation policy, including permissible timeframes and fees, will be displayed at the time of booking. Fare breakdown: Ola will now publicize the breakdown of fares, including base fare, per-kilometer charges, and other components. Driver instructions: Communications have been sent to encourage drivers to accept digital payments and ensure the air conditioning is switched on during rides. Driver payment cycles: Revised payment schedules ensure drivers receive their payments swiftly.

According to data from the National Consumer Helpline (NCH), there were 2,061 complaints lodged against Ola from January 1 to October 9, 2024. The top grievances included higher fares than shown during booking, non-refunded amounts, and drivers asking for extra cash.