Blog

The Central Consumer Protection Authority (CCPA) has directed ride-hailing platform Ola to implement consumer-friendly changes, including offering refund options and providing receipts for auto rides, the regulator said on Sunday.

The CCPA, led by Chief Commissioner Nidhi Khare, observed that Ola’s no-questions-asked refund policy only provided coupon codes for future rides, without giving consumers a choice for bank account refunds.

“This (practice) violates consumer rights,” the CCPA said in a statement. “The no-question-asked refund policy cannot mean that the company incentivises people to simply use this facility for taking another ride.”

The regulator also mandated Ola to issue bills or invoices for all auto rides booked through its platform, citing the absence of such documentation as an “unfair trade practice” under the Consumer Protection Act, 2019.

Following the CCPA’s intervention, Ola has implemented several changes, including displaying contact details of grievance and nodal officers on its website, clearly mentioning cancellation policies and fees at the time of booking, adding more options for ride cancellation reasons, and publicising fare component breakdowns.

The other changes implemented were showing addresses of both pickup and drop locations to drivers and revised payment cycles for drivers for swift payment.

The CCPA reported 2,061 complaints against Ola from January to October 2024, with top issues including overcharging, refund delays and driver-related problems.

“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,” the regulator stated.

The move comes as the CCPA increases scrutiny of digital platforms to protect consumer interests in the rapidly growing ecommerce and ride-hailing sectors.

(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric.)