The app now clearly displays the permitted time of cancellation and the cancellation fee amount at the time of booking. The Central Consumer Protection Authority (CCPA) has ordered Ola to implement a mechanism allowing consumers to select their preferred refund method—either directly to their bank account or via coupon—during the grievance redressal process. Additionally, Ola must now provide consumers with a bill, receipt, or invoice for all Auto rides booked through its platform, enhancing transparency and accountability. This landmark decision, supervised by Chief Commissioner Smt. Nidhi Khare, aims to safeguard consumer rights and address identified unfair practices.
What led to this decision?
CCPA observed that Ola's existing no-question-asked refund policy only offered a coupon code for future rides without giving consumers the option to choose a bank account refund. This restriction was seen as a violation of consumer rights.
"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."
Furthermore, CCPA noted that when consumers attempted to access invoices for Auto rides, the app displayed a message stating, "Customer invoice for Auto rides will not be provided due to changes in Ola’s auto service T&Cs." This was determined to be an unfair trade practice under the Consumer Protection Act, 2019.
"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."
Consumer-centric changes
Besides requiring refunds and invoices, CCPA's involvement resulted in several consumer-centric changes to the Ola app. Previously, contact details of the Grievance and Nodal officers were not prominently visible. Now, their names, phone numbers, and email addresses are listed in the Support section of the website.
Additionally, the app now clearly displays the permitted time of cancellation and the cancellation fee amount at the time of booking. This ensures that consumers are fully aware of any charges that may apply if they cancel their ride.
"The amount of cancellation fee amount 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 she/he proceeds to cancel."
Other updates
Other updates include a new acceptance screen for drivers showing both pickup and drop locations, additional reasons for ride cancellations to help avoid confusion, and a breakdown of fare components such as base fare, per km fare, and pre-wait charges. Ola has also issued communications encouraging drivers to accept digital payments and use air conditioning.
"Communications issued to drivers to encourage taking digital payments and switch on AC."
Finally, revised payment cycles have been introduced to ensure that drivers receive their payments promptly. These changes collectively aim to enhance the consumer experience and promote fair practices within Ola's platform.
