CCPA Instructs Ola Cabs To Give Refund Options, Ride Invoices To Consumers

The body said that whenever a customer raised a grievance in the Ola app as part of its ‘no questions asked’ refund policy, the firm would only provide a coupon code

2,061 complaints have been filed against Ola cabs on the national consumer helpline (NCH) this year as of October 9, 2024.

Source : Ola Cabs

The Central Consumer Protection Authority (CCPA) on Sunday instructed Ola Cabs to look into providing a clear choice to consumers that allows them to opt between a bank account transfer or a coupon when they want a refund during the grievance redressal process.

The authority issued the mandate asking the ride-hailing service provider to introduce the option for the consumers, reported Business Standard. The regulatory body stated that whenever a customer raised a grievance in the Ola app as part of its ‘no questions asked’ refund policy, the company would only provide a coupon code which could be redeemed in the next ride.

An official release from the Ministry of Consumer Affairs revealed, “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 Chief Commissioner Nidhi Khare issued instructions to the company to ensure that every consumer receives a bill or receipt or invoice for all the auto rides booked via the platform to help increase transparency and accountability. This ruling came after the authority observed that if a customer tried to access an invoice for auto rides booked via the platform, the app refused to share one citing ‘a change in auto service terms and conditions’. 

Notably, 2,061 complaints have been filed against Ola cabs on the national consumer helpline (NCH) this year as of October 9, 2024. Most of these complaints are regarding higher fare charged from the booking time and non refund of the said amount to customers.

The CCPA further noted, “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.”