“Government Orders Ola to Provide Refund Options and Invoices for Each Ride”

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The Indian government has taken significant steps to strengthen consumer rights in the ride-hailing sector by mandating Ola, the cab aggregator led by Bhavish Aggarwal, to implement new refund policies and provide receipts for auto rides. This directive comes from the Central Consumer Protection Authority (CCPA) under the Ministry of Consumer Affairs, Food and Public Distribution.

As part of this mandate, Ola must now allow customers to choose their preferred method of refund, whether through direct credit to their bank accounts or as coupon codes for future rides. This requirement was introduced following a surge in complaints against Ola, with the National Consumer Helpline (NCH) recording 2,061 grievances between January 1, 2024, and October 9, 2024. Many of these complaints centered around issues such as higher fares than those displayed during booking, failure to issue refunds, and drivers dropping passengers at incorrect locations.

CCPA Chief Commissioner Nidhi Khare emphasized that the existing policy, which primarily offered coupon codes as refunds, was inadequate. “This violates consumer rights, and the no-questions-asked refund policy cannot incentivize consumers to simply use this facility for another ride,” she stated.

Additionally, the CCPA raised concerns about Ola’s current practice of not providing invoices for auto rides booked through its platform. Customers attempting to access invoices were met with a notification stating, “Customer invoice for Auto rides will not be provided due to changes in Ola’s auto service T&Cs.” The CCPA classified this as an “unfair trade practice” under the Consumer Protection Act, 2019, compelling Ola to rectify this by providing receipts for every auto ride.

The directive aims to foster greater transparency and accountability within the ride-hailing sector, ensuring that consumers have more control over their transactions and grievances. With the implementation of these changes, the government hopes to enhance customer satisfaction and protect consumer rights in the rapidly evolving transportation industry.

Sources By Agencies