Central Consumer Protection Authority directs Ola for choice on refund mode
Consumers may choose refund
via Bank Account or Coupon in Grievance Redressal Process
Central Consumer Protection Authority’s intervention leads to crucial
consumer-centric changes in the Ola app
In a landmark decision, the Central Consumer Protection Authority (CCPA)
has directed Ola, a leading online ride-hailing platform, to implement a
mechanism allowing consumers to choose their preferred method of refund—either
directly to their bank account or via coupon—during the grievance redressal
process. Additionally, Ola has been instructed to provide consumers with a bill
or receipt or invoice for all Auto rides booked through its platform, ensuring
greater transparency and accountability in its services. The Authority is
headed by Chief Commissioner Smt. Nidhi Khare.
CCPA observed that the whenever 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 an clear choice to
the consumer to opt between a bank account refund or a coupon. It was observed
that 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.
Further, CCPA observed that if a consumer attempts to access 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 bill or invoice or receipt for the
goods sold or services rendered constitutes an ‘unfair trade practice’ under
the Consumer Protection Act, 2019.
2. Definitions.
(47) "unfair trade practice" means
a trade practice which, for the purpose of promoting the sale, use or supply of
any goods or for the provision of any service, adopts any unfair method or
unfair or deceptive practice including any of the following practices, namely:—
(vii) not issuing bill or cash memo or receipt for
the goods sold or services rendered in such manner as may be prescribed.
In addition to the above, CCPA’s intervention has
led to the following consumer-centric changes in the Ola app –
- Previously, no details of Grievance officer
and nodal officer were prominently visible on the website. Now, Name,
Phone number and e-mail of Grievance officer and nodal officer are
mentioned, in Support section of website.
- Permitted time of cancellation as per
cancellation policy, now prominently displayed at the time of booking
ride.
- The amount of cancellation fee amount is
now clearly mentioned on the ride booking page, so that the consumer
is clearly aware of the amount which could be charged on cancelling the
ride before she/he proceeds to cancel.
- New acceptance screen added for drivers where
address of both pickup and drop location is shown to drivers.
- In order to avoid inconvenience and
confusion, more reasons added against which consumer wishes to
cancel ride.
- List of components that constitute the total
fare added now publically available such as base fare, per km fare, pre-wait
charges etc.
- Communications issued to drivers to encourage
taking digital payments and switch on AC.
- Revised payment cycles for drivers so that
they get payment swiftly.
As per information on the National Consumer Helpline (NCH), a
total of 2,061 complaints have been registered against Ola from
01.01.2024 to 09.10.2024. The top categories of complaints include –
i.
Higher fare charged from consumer than what was shown at the time of
booking the ride
ii.
Non-refund of amount to the consumer
iii.
Driver asking for extra cash
iv.
Driver did not reach the correct location or dropped at incorrect
location
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. These measures aim to empower consumers, enhance trust,
and improve service provider accountability, reflecting the CCPA’s commitment
to ensuring a fair and secure experience for all consumers on e-commerce
platforms.