Customers' Advocacy Group CCPA Mandates Ola to Provide Refund Options

Nitin Konde, Varun Bhardwaj

Oct 15, 2024 — 3 min read

CCPA Mandates Ola to Provide Refund

On October 13, 2024, the Central Consumer Protection Authority (CCPA) announced that Ola, a ride-hailing company, has been ordered to make improvements that will benefit customers. These modifications include giving refund alternatives and giving receipts for auto rides. Chief Commissioner Nidhi Khare of the CCPA noted that Ola's no-questions-asked refund policy did not give customers the option to get bank account refunds; instead, it only offered coupon tickets for future rides.

The CCPA declared in a statement that "this practice violates consumer rights." "Using this facility to take another ride is not an incentive for customers to use the company's no-question-asked refund policy."

The app displays the notice, "Customer invoice for auto rides will not be provided due to changes in Ola's auto service T&Cs," if a customer tries to view an invoice for an auto ride that they booked on Ola, according to the regulator.

As per CCPA, failing to provide a bill, invoice, or receipt for the products sold or services rendered qualifies as an "unfair trade practice" for the purposes of the Consumer Protection Act of 2019. It has instructed the taxi aggregator to provide its clients with bills.

Who is Central Consumer Protection Authority?

Established under the Consumer Protection Act, 2019, the CCPA went into effect on July 24, 2020, and is designed to regulate issues pertaining to consumer rights violations, unfair trade practices, and deceptive or false advertisements that harm consumers' interests and those of the general public.

The CCPA maintains regional offices throughout India in addition to its headquarters in Delhi, the nation's capital. A Chief Commissioner and other Commissioners chosen by the Central Government oversee the CCPA.

Ola Aligning Itself with CCA

In accordance with the Consumer Protection Act of 2019, the regulator further ordered Ola to provide bills or invoices for every auto ride that was scheduled through its platform, referring to the lack of such evidence as an "unfair trade practice."

Ola has made a number of changes in response to the CCPA's intervention. These include posting the contact information of grievance and nodal officers on its website, making cancellation policies and fees obvious at the time of booking, expanding the list of options for reasons why a ride may be cancelled, and making the fare component breakdowns available to the public.

The addresses of the pickup and drop places were displayed to drivers, and the payment periods were adjusted to enable drivers to get paid quickly.

What Leads CCPA to Intervene?

From January to October 2024, the CCPA received 2,061 complaints against Ola. The most common concerns included overcharging, delays in refunds, and troubles with drivers.

"The Consumer Protection Act (CCPA) has demonstrated unwavering commitment to upholding Ola's adherence to the legal framework designed to safeguard consumer rights by means of its regulatory intervention," the regulator remarked.

This action is taken in response to the CCPA's increased examination of digital platforms in order to safeguard consumer interests in the quickly expanding ride-hailing and e-commerce industries.