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NEWS ARTICLE

Consumer Protection Authority orders Ola to provide choice to consumers for preferred method of refund



Ola only provided a coupon code which 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. The Central Consumer Protection Authority observed that to be a violation of consumer rights. 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 rides booked through its platform, ensuring greater transparency and accountability in its services. The CCPA observed that the whenever consumer raised any grievance on the Ola app, as part of its no-question-asked refund policy, Ola only provided a coupon code which 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.