Government cracks down on Ola; Customers demands refund options and proper billing for auto rides

The Indian government has mandated that Ola, led by Bhavish Aggarwal, implement a system that allows customers to select their preferred refund method. The Central Consumer Protection Authority (CCPA), operating under the Ministry of Consumer Affairs, Food and Public Distribution, instructed the ride-hailing service to issue a bill, receipt, or invoice for every auto ride booked on its platform.

Rising Complaints Against Ola

Data from the National Consumer Helpline (NCH) reveals that Ola faced 2,061 complaints between January 1, 2024, and October 9, 2024. Many complaints centred on issues such as charging higher fares than advertised, failing to refund customers, and drivers either requesting additional cash or incorrectly reaching passengers’ destinations.

Also read: 4 ways you might be unknowingly damaging your smartphone

The CCPA has emphasised the need for Ola to allow consumers to choose between two refund methods: direct deposits into their bank accounts or credits in the form of coupons. Currently, when users report issues through the Ola app, they only receive coupon codes for future rides, without a clear option for a bank transfer or alternative refund method.

CCPA Chief Commissioner Nidhi Khare highlighted that the existing approach violates consumer rights, stating, “The no-questions-asked refund policy cannot imply that the company encourages users to take another ride instead,” Times of India reported.   

Also read: OnePlus 13 could launch with custom Snapdragon 8 Elite chip: Check launch date, expected specs and more

Unfair Trade Practices

The CCPA’s directive also addresses the lack of billing for auto rides. Users trying to access invoices through the app encounter a message stating, “Customer invoice for Auto rides will not be provided due to changes in Ola’s auto service T&Cs.” The CCPA has deemed the failure to provide receipts as an “unfair trade practice” under the Consumer Protection Act, 2019, insisting that Ola must comply and issue bills to its customers for their rides. 

Also read: Honor Magic 7 series set to launch on October 30; MagicOS 9.0 to unveil on this date- All details

Ola’s compliance with these directives remains crucial in restoring consumer trust and ensuring adherence to consumer protection regulations.