CCPA questions Ola Electric's 99% resolution rate for 10,000 complaints

Ola Electric came under scrutiny by the Department of Consumer Affairs after customers complained about its EV after-sales service

The Department of Consumer Affairs is reviewing Ola Electric following over 10,000 consumer complaints regarding its after-sales service. The Central Consumer Protection Authority (CCPA) has issued a notice to Ola Electric, questioning the company's claim that it resolved 99 per cent of these complaints, according to a report by CNBC-TV18. This follows a rise in complaints from customers about after-sales service, for which CCPA had recently issued a notice to Ola Electric.

 

CCPA is now looking into the accuracy of Ola Electric’s claims that they have resolved 99 per cent of the complaints. This move is reportedly to ensure transparency and confirm Ola’s claim about how many issues have been solved.

 

 

The CCPA’s review of Ola Electric is part of a larger effort to monitor complaints in various industries, as earlier reported by Business Standard. The Department of Consumer Affairs is focusing on ten sectors with high complaint rates. They are trying to find out if these problems are isolated or if they point to larger issues across the market. This regulatory action is also part of an effort to strengthen consumer rights in the evolving e-commerce and ride-hailing sectors.

 

Last week, the CCPA, led by Chief Commissioner Nidhi Khare, raised concerns about Ola’s refund policy. This policy offered only future ride coupons instead of cash refunds. The CCPA found that this practice did not give consumers a true choice and violated their rights. 

As a result, the CCPA has instructed Ola to improve its refund process to be more consumer-friendly. They have also mandated that Ola provide receipts for all auto rides, which were not given before. This absence of documentation was considered an ‘unfair trade practice’ under the Consumer Protection Act of 2019.

 

Ola Electric’s customer service has faced heavy criticism. This criticism has affected the company's share of the market in India's competitive EV sector. Its market share dropped to 27 per cent in September from 52 per cent in April. This decline is also reflected in its stock performance, which fell to Rs 77 from Rs 157.4 per share at its launch in August.

 

Additionally, the Automotive Research Association of India (ARAI) is investigating whether Ola meets service and warranty requirements set by government subsidy guidelines. This includes checking if Ola sells vehicles at prices that comply with regulations.