CCPA Directs Ola To develop mechanism providing choice to consumers regarding refund mode

Bengaluru: An Ola customer has come up with a unique way to protest against the company’s two-wheeler after experiencing multiple issues with it. ( File Pic credit: X/@Nisha_gowru)

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The Authority is headed by Chief Commissioner Nidhi Khare.

In a landmark decision, the Central Consumer Protection Authority (CCPA) has directed Ola, a leading online ride-hailing platform, 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.

Additionally, Ola has been instructed to provide consumers with a bill or receipt or invoice for all Auto rides booked through its platform, ensuring greater transparency and accountability in its services.

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The Authority is headed by Chief Commissioner Nidhi Khare.

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 that could be used for the next ride without providing a clear choice to the consumer to opt between a bank account refund or a coupon.

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.

Further, CCPA observed that if a consumer attempts to access 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 was observed that not issuing bill or invoice or receipt for the goods sold or services rendered constitutes an ‘unfair trade practice’ under the Consumer Protection Act, 2019.

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