CCPA directs Ola to offer customers an option to get refunds to their source bank account

The Central Consumer Protection Authority (CCPA) has directed the ride-hailing giant wave implement a mechanism that allows consumers to choose their preferred method of refund, either directly to their bank account or through a coupon, during the grievance redressal process.

Additionally, Ola has been directed to provide consumers with an invoice or receipt or bill for all car rides booked through its platform, ensuring greater transparency and accountability in its services.

What led to this decision?

According to the press release, CCPA observed that whenever the consumer raised any complaint on the Ola app, as part of its no-questions-asked refund policy, Ola only provided a coupon code that could be used for the next ride without giving the consumer a clear option to choose between a bank account refund or a coupon.

The authority said this violates consumer rights and the no-questions-asked refund policy cannot mean that the company is incentivizing people to simply use this facility for another trip.

Additionally, the CCPA observed that if a consumer tries to access the invoice for car rides booked on Ola, the app displays the message “Invoice will not be provided to the customer for car rides due to changes in the terms and conditions of the car service.” Ola car.”

It was observed that failure to issue invoice or receipt for goods sold or services provided constitutes “unfair trade practice” under the Consumer Protection Act, 2019.

Consumer-centric changes in Ola app

As a result of the intervention, the CCPA said that several consumer-centric changes have been introduced in the Ola app. Earlier, essential information such as contact details of grievance officer and nodal officer were not prominently displayed. Now, the name, phone number and email of these officials are clearly displayed in the support section of Ola’s website, giving consumers better access to assistance.

Additionally, Ola has made changes to its cancellation policy. The allowed cancellation time is now clearly visible at the time of booking, ensuring consumers are fully aware of when they can cancel a trip without incurring charges.

The amount of the cancellation fee is also explicitly stated on the booking page, avoiding any confusion. Additionally, Ola has added more reasons to the list of possible cancellation causes, allowing consumers to better specify why they want to cancel a trip.

Other updates to the app include improvements to driver communication and trip details. For example, a new acceptance screen has been introduced for drivers, showing pickup and drop-off locations before accepting a ride. This aims to reduce confusion and ensure smoother journeys.

Ola has also made the fare breakdowns public, providing consumers with detailed information on what constitutes the total fare, including the base fare, per kilometer charges and pre-waiting fares.

NCH ​​records a total of 2,061 complaints against Ola

The changes come in response to continued consumer dissatisfaction, as reflected in data from the National Consumer Helpline (NCH). From January 1, 2024 to October 9, 2024, a total of 2,061 complaints were registered against Ola.

The most common complaints include being charged higher fares than initially displayed at the time of booking, non-refunding of payments, drivers demanding extra money, and incidents where drivers did not arrive at the location. correct or left passengers at incorrect destinations.