New Delhi: The Central Consumer Protection Authority (CCPA) has directed Ola, the popular online ride-hailing platform, to implement a mechanism that allows consumers to choose their preferred method of refund—either directly to their bank account or via a coupon—during the grievance redressal process. In addition, Ola has been instructed to provide consumers with a bill, receipt, or invoice for all auto rides booked through its platform, ensuring greater transparency and accountability in its services.

The CCPA observed that whenever a consumer raised a grievance on the Ola app, the platform's no-questions-asked refund policy only offered a coupon code, which could be used for the next ride. However, the platform did not provide a clear choice for consumers to opt for a bank account refund instead of a coupon. This practice was deemed a violation of consumer rights, as the refund policy cannot be used as a tool to incentivise consumers to book another ride.

Additionally, the CCPA found that when consumers tried to access invoices for auto rides booked on Ola, the app displayed a message stating that customer invoices for auto rides would not be provided due to changes in Ola’s auto service terms and conditions. The Authority determined that not issuing a bill, invoice, or receipt for goods or services rendered constitutes an unfair trade practice under the Consumer Protection Act, 2019.

As a result of the CCPA’s intervention, several consumer-centric changes have been introduced in the Ola app. Previously, details of the grievance officer and nodal officer were not prominently visible on the website. Now, the names, phone numbers, and email addresses of both officers are listed in the support section. Additionally, the permitted time for cancellations, according to Ola’s cancellation policy, is now prominently displayed at the time of booking, and the exact cancellation fee is clearly mentioned before consumers proceed to cancel a ride.

Ola has also introduced a new acceptance screen for drivers, showing both pickup and drop locations to prevent confusion. More detailed cancellation reasons are now available to consumers when cancelling a ride, reducing potential inconvenience. The breakdown of fare components, such as base fare, per-kilometre rate, and pre-wait charges, is now publicly accessible. Communications have been issued to drivers encouraging the use of digital payments and advising them to switch on the AC. In addition, revised payment cycles have been introduced to ensure drivers receive swift payments.

As per information from the National Consumer Helpline (NCH), a total of 2,061 complaints were registered against Ola between 1 January 2024 and 9 October 2024. The top categories of complaints include higher fares being charged than displayed at the time of booking, non-refund of payments, drivers asking for extra cash, and drivers either not reaching the correct location or dropping passengers at the wrong destination.

Through its regulatory intervention, the CCPA remains committed to ensuring that Ola adheres to the legal framework designed to protect consumer rights. These measures are aimed at empowering consumers, enhancing trust, and improving accountability among service providers, reflecting the CCPA’s dedication to ensuring a fair and secure experience for all consumers using e-commerce platforms.

BI Bureau