CCPA directs Ola to offer customers choice of refund method

The Central Consumer Protection Authority (CCPA) has mandated that Ola, a prominent ride-hailing service, must allow customers to select their preferred refund method during the grievance redressal process. Customers will now have the option to receive refunds either directly to their bank accounts or via coupon codes.

Led by Chief Commissioner Nidhi Khare, the CCPA has also instructed Ola to issue a bill, receipt, or invoice for all Auto rides booked through its platform, enhancing transparency and accountability.

Previously, when customers filed grievances on the Ola app, the company’s no-questions-asked refund policy only offered coupons for future rides, without providing the option of a bank refund. The CCPA found this practice to violate consumer rights, stating that the policy should not force consumers to use the refund for another ride.

Additionally, customers attempting to access invoices for Auto rides would encounter a message stating that invoices were not available due to changes in Ola's service terms. The CCPA highlighted that not issuing an invoice constitutes an ‘unfair trade practice’ under the Consumer Protection Act, 2019.

In response to the CCPA's intervention, Ola has made several consumer-centric updates to its app:

The contact information of the Grievance and Nodal Officers is now prominently displayed in the Support section.

Cancellation policies, including permitted cancellation times and fees, are now clearly visible at the time of booking.

Drivers now see both pickup and drop-off locations before accepting a ride.

More detailed reasons for ride cancellations are provided to avoid confusion.

A breakdown of fare components, including base fare, per km fare, and pre-wait charges, is now publicly available.

Drivers are encouraged to accept digital payments and use air conditioning.

Payment cycles for drivers have been revised for faster disbursement.

The National Consumer Helpline (NCH) recorded 2,061 complaints against Ola from January 1 to October 9, 2024. These complaints included issues such as higher fares than shown at booking, non-refund of amounts, drivers demanding extra cash, and incorrect drop-off locations.