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Consumer protection authority asks Ola Cabs to provide users with refund choices (Pic: Instagram)
The Central Consumer Protection Authority (CCPA) has directed ride-hailing service Ola Cabs to give customers a clear choice between receiving a refund to their bank account or a coupon during the grievance redressal process.
The CCPA stated that when a customer raises an issue on the Ola app, the platform only offers a coupon for future rides as part of its no-questions-asked refund policy, without providing a clear option for a bank account refund. The CCPA noted that this practice infringes on consumer rights, saying, "The no-questions-asked refund policy should not incentivise users to simply take another ride."
The CCPA has further mandated that Ola issue bills or invoices for all auto rides booked through its platform, as the lack of such documentation is considered an "unfair trade practice" under the Consumer Protection Act of 2019.
Ola makes amends
In response to the CCPA's intervention, Ola has made several changes. These include displaying contact details for grievance and nodal officers on its website, clearly stating cancellation policies and fees at the time of booking, adding more options for cancellation reasons, and providing a breakdown of fare components.
Other changes involve showing the addresses of both pickup and drop-off locations to drivers and revising payment cycles for quicker payments to drivers.
From January to October 2024, the CCPA received 2,061 complaints against Ola, with common issues including overcharging, delays in refunds, and driver-related problems.
CCPA steps up scrutiny of digital platforms
The Central Consumer Protection Authority (CCPA) has the authority to investigate consumer complaints regarding unfair commercial practices and take appropriate action against businesses found to be in violation. The CCPA has stressed its commitment to ensuring that Ola follows the legal framework designed to protect consumer rights. This move comes as the CCPA intensifies its scrutiny of digital platforms to safeguard consumer interests in the rapidly growing e-commerce and ride-hailing sectors.
