Guwahati: The Central Consumer Protection Authority (CCPA) has directed Ola, a leading online ride-hailing platform, to implement a mechanism allowing the consumers to choose their preferred method of refund – either directly to their bank account or via coupon – during the grievance redressal process.
Additionally, Ola has been instructed to provide the consumers with a bill or receipt or invoice for all auto rides booked through its platform, ensuring greater transparency and accountability in its services. The authority is headed by Chief Commissioner Nidhi Khare, the Union Ministry of Consumer Affairs, Food and Public Distribution said in a press statement on Sunday.
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The CCPA observed that whenever a consumer raised any grievance on the Ola app, as part of its no-question-asked refund policy, Ola only provided a coupon code which could be used for the next ride without providing a clear choice to the consumer to opt between a bank account refund and a coupon, it added.
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, it said.
The CCPA also 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,’ it added.
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It was further 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, it said.
“Unfair trade practice” is defined as a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practices including, not issuing bill or cash memo or receipt for the goods sold or services rendered in such manner as may be prescribed, the statement added.
In addition, the CCPA’s intervention has led to consumer-centric changes in the Ola app which include:
· Previously, no details of grievance officer and nodal officer were prominently visible on the website. Now, the name, phone number and e-mail of the grievance officer and nodal officer are mentioned in the support section of the website.
· Permitted time of cancellation as per the cancellation policy now prominently displayed at the time of booking a ride.
· The amount of cancellation fee is now clearly mentioned on the ride booking page so that the consumer is clearly aware of the amount which could be charged on cancelling the ride before the consumer proceeds to cancel.
· New acceptance screen added for drivers where address of both pickup and drop location is shown to the drivers.
· In order to avoid inconvenience and confusion, more reasons were added against which the consumer wishes to cancel a ride.
· List of components that constitute the total fare added now publicly available such as base fare, per km fare and pre-waiting charges, among others.
· Communications issued to the drivers to encourage taking digital payments and switch on the AC (air conditioning).
· Revised payment cycles for the drivers so that they get payment swiftly.
As per information on the National Consumer Helpline (NCH), a total of 2,061 complaints have been registered against Ola from January 1, 2024 to October 9, 2024, it informed.
The top categories of complaints include higher fare charged from a consumer 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, it 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 the consumers, it said.
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 statement further said.