CCPA directs Ola to improve refund and billing transparency for users

New Delhi: In a landmark ruling, the Central Consumer Protection Authority (CCPA) has instructed Ola, a prominent ride-hailing platform, to provide consumers with the option to choose between a direct bank refund or coupon during grievance resolution. The authority also mandated that Ola issue receipts for all Auto rides, marking a significant step toward enhancing transparency and consumer rights.

Refund mechanism reform

The CCPA found that Ola’s current refund process only provided coupon codes for future rides, without giving consumers the option to receive refunds directly into their bank accounts. This, according to the authority, violated consumer rights, as it restricted the freedom of choice in refund methods. Ola’s practice of incentivizing repeat rides by offering only coupons was deemed misleading and not in the spirit of its no-questions-asked refund policy.

Lack of invoices for auto rides

Another issue identified by the CCPA was Ola’s refusal to issue invoices for Auto rides. Consumers attempting to access receipts were met with a message stating, “Customer invoice for Auto rides will not be provided due to changes in Ola’s auto service T&Cs.” The CCPA labeled this practice as an ‘unfair trade practice’ under the Consumer Protection Act, 2019, which mandates that a bill or receipt be issued for services rendered.

Consumer-centric changes in Ola App

As a result of CCPA’s intervention, Ola has introduced several consumer-friendly updates to its app:

Grievance officer details: The names, phone numbers, and emails of the Grievance and Nodal Officers are now prominently displayed in the app’s support section.

Cancellation policy clarity: The allowed time for cancellations, along with the cancellation fee, is now displayed at the time of booking.

Clear fare breakdown: Ola now publicly lists all fare components, including base fare, per-kilometer fare, and pre-wait charges, allowing consumers to understand the total cost.

Driver communications: Drivers are now encouraged to accept digital payments and keep the air conditioning on for customer convenience. An additional screen displaying both pickup and drop-off addresses has also been added to reduce confusion.

Swift Payment Cycles for Drivers: Revised payment cycles ensure faster disbursement of payments to Ola drivers.

Addressing customer complaints

From January 1, 2024, to October 9, 2024, a total of 2,061 complaints were registered against Ola on the National Consumer Helpline (NCH). Common issues included:

Higher fares than those shown at the time of booking.
Non-refund of payments.
Drivers demanding extra cash.
Drivers not arriving at or leaving passengers at incorrect locations.

Upholding consumer rights

The CCPA’s actions highlight its ongoing efforts to ensure that e-commerce platforms like Ola adhere to consumer protection laws. By implementing these reforms, the authority seeks to empower consumers, enhance trust, and hold service providers accountable. This ruling reaffirms the CCPA’s dedication to fostering a fair and secure environment for all consumers.

The measures also reflect a commitment to upholding the legal framework and ensuring that consumers enjoy a transparent and seamless experience on ride-hailing platforms.