Ola Electric did not cooperate, many consumer helpline cases closed unresolved: Consumer Affairs Secretary

The CCPA’s suo motu action comes amid allegations of non-cooperation on the part of Ola Electric, Khare added.

He CCPA Show Cause Notice It is based on 9,948 complaints received between September 2023 and August 2024, predominantly focused on late deliveries, defective products and misleading advertisements. Ola Electric now has 15 days to respond, with the notice warning of violations under the Consumer Protection Act 2019, including unfair trade practices and deficiencies in service.

Highlighting the seriousness of the situation, Khare pointed out that complaints on the National Consumer Helpline (NCH) had increased due to unresolved customer complaints.

“With such a high volume of complaints (more than 10,000 in one year, related to issues such as delayed refunds, delays in service, denial of warranties, and inconsistencies in performance), this case was a clear candidate for a class action lawsuit. When we come across cases of repeated violations, we file a class action lawsuit after carefully examining the facts,” Khare emphasized.

The CCPA has sent over 10,000 files, documenting complaints received by the National Consumer Helpline, to Ola Electric for resolution. “All complaints related to this company have been forwarded to them for investigation and resolution,” Khare said.

Khare further emphasized that with almost 10,000 complaints in a single year, Electric Wave was an obvious candidate for the class action lawsuit.

“Companies should treat complaints as valuable feedback for improvement: complaints are your ears and your eyes. However, one of the worrying findings was that Ola Electric had been charging customers even during the free service period, which is simply unacceptable,” he said. Mint.

Ola Electric’s unresolved complaints range from delayed refunds and service delays to warranty rejections and performance inconsistencies. Khare noted that complaints about charging customers during the free service period were particularly concerning and called such practices unacceptable.

“We cannot leave individual customers to fight the company alone,” he said. “In many cases, we had to close complaints after 45 days without resolution, leading to consumer dissatisfaction. “If a company does not address the issues, we will ensure they are held accountable,” he added.

Mint reported in September that the company received more than 80,000 service-related complaints each month.

A pattern of consumer complaints

The CCPA investigation follows a rise in complaints, with Ola Electric emerging as one of the most complained about companies on the National Consumer Helpline (NCH). Key complaints include:

Delayed deliveries: 1,899 complaints about late deliveries of scooters.

Service delays: 3,364 complaints about slowness in repairs and services.

Defective vehicles: Reports of manufacturing defects, poor build quality, and recurring technical issues.

Misleading ads: Allegations that Ola exaggerated the performance and availability of its products.

Bad customer service: Complaints about difficulties reaching support, delayed responses, and unsatisfactory problem resolutions.

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Responding to the show cause notice, Ola Electric acknowledged receipt and assured the stock exchanges of its commitment to address consumer concerns. The company stated that it would provide a detailed response to the CCPA within the required time frame and assured that the notice would not affect its financial, operational or other activities. To address service-related complaints, Ola has revamped its service teams and expanded service touchpoints, including certified service partners, to accelerate improvements.

The CCPA has handled similar cases before, such as those involving misleading claims by training institutions. During the pandemic lockdown, many consumers had difficulty obtaining refunds from airlines, tour operators and travel agencies. Despite a Supreme Court order forcing airlines to refund consumers, tour operators and travel agencies made little effort. CCPA intervention resulted in $1,454 crore in refunds to consumers.

Established under Section 10 of the Consumer Protection Act, the CCPA has the authority, under Section 18(2)(a), to bring class action lawsuits for violations of consumer rights, deceptive advertising, and unfair business practices, including in a suo motu manner. base.

The show cause notice highlights that the CCPA is empowered under the Consumer Protection Act to take class actions on behalf of customers when repeat violations occur, ensuring that consumers do not have to individually fight large companies for their rights. It does so to safeguard the collective interests of consumers and hold corporations accountable for widespread misconduct.

Interestingly, the government’s FAME-II scheme requires a three-year or 20,000 km warranty for electric two-wheelers to be eligible for subsidies. It is not yet clear whether the investigation into Ola’s warranty practices could jeopardize its eligibility for subsidies.

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However, sources close to the matter said Mint that “assurances must be honored, not just given on paper,” suggesting that the subsidy issue may be revisited once Ola submits its response, and possibly if an appeal is filed.