Ola told to provide refund options via bank account

New Delhi: The Central Consumer Protection Authority (CCPA) on Sunday said it has directed ride-hailing platform Ola to provide consumers with a receipt or invoice for all rides and, in the case of refunds, an option to get it via bank account or coupon.

Bhavish Aggarwal-led Ola claims to offer a no-question-asked refund policy. However, when a customer asks for a refund the company issues a coupon code which can be used for the next ride. This means the aggrieved customers have no choice but to use the service again.

“It was observed 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,” the Central Consumer Protection Authority (CCPA) said in a statement.

In view of this, the Authority said it has directed 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.

The Authority has also instructed Ola to provide consumers with a bill or receipt or invoice for all auto rides booked through its platform.

“CCPA observed that if a consumer attempts to access an 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 (terms and conditions).’ It was observed that not issuing a bill or invoice or receipt for the goods sold or services rendered constitutes an ‘unfair trade practice’ under the Consumer Protection Act, 2019,” the consumer protection watchdog said.

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. These measures aim to empower consumers, enhance trust, and improve service provider accountability, reflecting the CCPA’s commitment to ensuring a fair and secure experience for all consumers on e-commerce platforms, the authority added.

As per information on the National Consumer Helpline, 2,061 complaints were registered against Ola till October 9 in the 2024 calendar year. The top categories of complaints include, higher fare charged from consumers than what was shown at the time of booking the ride; non-refund of amount to the consumer; driver asking for extra cash and driver did not reach the correct location or dropped at incorrect location.

CCPA claimed that its interventions have forced Ola app to make several consumer-centric changes. “Previously, no details of Grievance officer and nodal officer were prominently visible on the website. Now, Name, Phone number and e-mail of Grievance officer and nodal officer are mentioned, in Support section of website,” it said.

Other changes in Ola app made on the interventions of CCPA include the display of permitted time of cancellation, amount of cancellation fee and fare breakup like base fare, per km fare, pre-wait charges etc.