CCPA directs Ola to implement transparent refund mechanism

New Delhi: The Central Consumer Protection Authority (CCPA) has directed Ola to establish a more consumer-friendly refund process, enabling users to choose their preferred method of refund during the grievance redressal process. This move aims to enhance consumer rights and promote transparency within the platform.

As part of the directives, Ola is required to issue a bill, receipt, or invoice for all auto rides booked via its app. This change ensures that consumers have a clear record of their transactions, bolstering trust and accountability.

The CCPA's investigation revealed that Ola’s "no-questions-asked" refund policy only provided a coupon for future rides, without offering the option for a direct refund to the consumer’s bank account. This limitation violated consumer rights and potentially discouraged continued platform use.

Moreover, the CCPA observed that Ola failed to provide invoices for auto rides, citing changes in its terms and conditions. The authority flagged this as an "unfair trade practice" under the Consumer Protection Act, 2019, noting that all consumers are entitled to receive a proper bill or receipt for services rendered.

As a result of CCPA's intervention, Ola has made significant updates to its platform, including:

• Displaying contact details for the Grievance Officer and Nodal Officer.
• Clarifying the cancellation policy and fees.
• Introducing an acceptance screen for drivers to confirm rides.
• Providing more detailed fare breakdowns and reasons for ride cancellations.
• Encouraging digital payments among drivers.
• Revising driver payment cycles to improve their experience.

These changes are expected to significantly enhance the consumer experience, ensuring that grievances are addressed more transparently and effectively. The CCPA’s actions highlight its ongoing commitment to safeguarding consumer rights and fostering fair trade practices in the growing digital marketplace.