Government cracks down on Ola; Customers demand tailored payment and refund options for car trips
The Indian government has asked Ola, headed by Bhavish Aggarwal, to implement a system that allows customers to choose their preferred method of refund. The Central Consumer Protection Authority (CCPA), under the Ministry of Consumer Affairs, Food and Public Distribution, has directed ride-hailing services to issue bills, receipts or invoices for each Car trips are located on its platform.
Complaints increase against Ola
Data from the National Consumer Helpline (NCH) revealed that Ola faced 2,061 complaints between January 1, 2024 and October 9, 2024. Many complaints focused on issues Issues such as charging fares higher than advertised, not refunding customers, and drivers requesting additional tickets. cash or arriving at the wrong passenger destination.
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The CCPA has highlighted the need for Ola to allow consumers to choose between two refund methods: direct deposit to their bank account or credit in the form of coupons. Currently, when users report an issue through the Ola app, they only receive a coupon code for future rides with no clear option of bank transfer or alternative refund method .
CCPA Chief Commissioner Nidhi Khare emphasized that the current approach violates consumers’ rights, stating: “A no-questions-asked refund policy cannot imply that the company encourages users to take the trip alternative”, Times of India reported.
Unfair trade practices
The CCPA directive also addresses missing receipts for car trips. Users attempting to access invoices through the app will encounter a message stating: “Customer invoices for Car trips will not be provided due to changes in the Terms & Conditions of Service. Ola’s car business”. CCPA considers failure to provide receipts an “unfair trade practice” under the Consumer Protection Act 2019, and emphasizes that Ola must comply and issue invoices for customer trips .
Ola’s compliance with these directives remains critical in restoring consumer confidence and ensuring compliance with consumer protection regulations.
