The Central Consumer Protection Authority (CCPA) has ordered ride-hailing giant Ola to make significant consumer-friendly changes, including offering refund choices and providing receipts for auto rides, the regulator announced on Sunday.
Led by Chief Commissioner Nidhi Khare, the CCPA criticized Ola's "no-questions-asked" refund policy, which previously only offered coupon codes for future rides, leaving consumers without the option to receive refunds directly into their bank accounts. "This practice infringes on consumer rights," the CCPA stated, adding that the policy should not simply push customers to take another ride.
Additionally, the CCPA has mandated Ola to issue bills or invoices for all auto rides booked via its platform. The lack of such documentation was deemed an "unfair trade practice" under the Consumer Protection Act of 2019.
Following the CCPA's involvement, Ola has made several improvements.
These include displaying contact details of grievance and nodal officers on its website, clearly outlining cancellation policies and fees, expanding the list of cancellation reasons, and breaking down fare components more transparently. The company has also enhanced its service by ensuring drivers see both pickup and drop locations and by improving payment cycles so that drivers can make quicker transactions.
The CCPA reported that it had received 2,061 complaints against Ola between January and October 2024, with the most common issues being overcharging, refund delays, and driver-related concerns.
The CCPA's actions reflect increased scrutiny of digital platforms as the authority seeks to protect consumers in the rapidly expanding e-commerce and ride-hailing industries.