CCPA orders Ola to offer an option to customers to get refunds in their source bank account

The Central Consumer Protection Authority (CCPA) has directed ride-hailing giant Ola to implement a mechanism allowing consumers to choose their preferred method of refund—either directly to their bank account or via coupon—during the grievance redressal process.

Additionally, Ola has been instructed to provide consumers with a bill or receipt or invoice for all Auto rides booked through its platform, ensuring greater transparency and accountability in its services.

What led to this decision?

As per the press statement, CCPA observed that the whenever consumer raised any grievance on the Ola app, as part of its no-question-asked refund policy, Ola only provided a coupon code which could be used for the next ride without providing an clear choice to the consumer to opt between a bank account refund or a coupon.

The authority said 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 observed that if a consumer attempts to access invoice for Auto rides booked on Ola, the app shows the message ‘Customer invoice for Auto rides will not be provided due to changes in Ola’s auto service T&Cs.’

It was observed that not issuing bill or invoice or receipt for the goods sold or services rendered constitutes an ‘unfair trade practice’ under the Consumer Protection Act, 2019.

Consumer-centric changes in the Ola app

As a result of intervention, CCPA said several consumer-centric changes have been introduced in Ola’s app. Previously, essential information such as the contact details of the grievance officer and nodal officer were not prominently displayed. Now, the name, phone number, and email of these officers are clearly listed in the support section of Ola’s website, giving consumers better access to assistance.

Furthermore, Ola has made changes to its cancellation policy. The allowed cancellation time is now clearly visible at the time of booking, ensuring that consumers are fully aware of when they can cancel a ride without incurring fees.

The amount of the cancellation fee is also explicitly stated on the booking page, preventing any confusion. Additionally, Ola has added more reasons to the list of potential cancellation causes, allowing consumers to better specify why they wish to cancel a ride.

Other updates to the app include improvements to driver communication and ride details. For instance, a new acceptance screen has been introduced for drivers, displaying both the pickup and drop-off locations before they accept a ride. This aims to reduce confusion and ensure smoother trips.

Ola has also made fare breakdowns public, providing consumers with detailed information about what constitutes the total fare, including base fare, per-kilometer charges, and pre-wait fees.

NCH registers total 2,061 complaints against Ola

The changes come in response to ongoing consumer dissatisfaction, as reflected by data from the National Consumer Helpline (NCH). From January 1, 2024, to October 9, 2024, a total of 2,061 complaints were registered against Ola.

The most common complaints include higher fares being charged than what was initially displayed at the time of booking, non-refund of payments, drivers demanding extra cash, and incidents where drivers either failed to reach the correct location or dropped passengers at incorrect destinations.