Consumer Protection Body Issues Notices To Ola, Uber For Unfair Trade Practices

The Central Consumer Protection Authority has given 15-days’ time to these two firms to reply to the notices

New Delhi: Online cab aggregators Ola and Uber got notices from the consumer protection regulator Central Consumer Protection Authority (CCPA) on Friday for unfair trade practices and violation of consumer rights.

The CCPA has given 15-days’ time to these two firms to reply to the notices.

"We have issued notices to both Ola and Uber. Most of the consumer complaints received in the last one year are related to the deficiency in services and other unfair trade practices," Central Consumer Protection Authority (CCPA) Chief Commissioner Nidhi Khare said.

The CCPA mentioned that a significant number of complaints have been lodged by consumers across the country on multiple issues, which affect their rides booked through both the ride-hailing platforms.

The data from the National Consumer Helpline (NCH) suggested that 2,482 grievances were registered by consumers against Ola, and 770 grievances were registered against Uber from April 1, 2021, to May 1, 2022.

According to the report, there are 54 per cent of the complaints were lodged related to the deficiency in services in Ola, while in the case of Uber, the figure was 64 per cent.

The notices to Ola, Uber have been issued days after the Consumer Affairs Ministry called a meeting on May 10 with cab aggregators.

The central government had warned of strict action against these firms unless they improve their systems and redress rising consumer complaints. "We told them about the rising consumer complaints against their platforms. We gave them the statistics also. We have asked them to improve their system and redress the consumer complaints otherwise the competent authority will take strict action," Consumer Affairs Secretary Rohit Kumar Singh had said after the meeting.

The meeting was attended by representatives of Ola, Uber, Meru, Rapido, and Jugnu.

The meeting was held with the ride-hailing platforms amid a rise in consumer complaints of alleged unfair trade practices by them, including ride cancellation policy, as drivers force customers to cancel trips after accepting bookings, which results in customers paying cancellation penalties.

With PTI inputs