Consumer protection authority issues show-cause notice to Ola Electric amid surge in consumer complaints

The Central Consumer Protection Authority (CCPA) has issued a show cause notice to Ola Electric, the country's leading electric two-wheeler maker, regarding 9,948 consumer complaints received on the National Consumer Helpline between September 1, 2023, and August 30, 2024.

The notice shows that the complaints encompass various grievances, from delayed deliveries and faulty vehicles to misleading advertisements and poor customer service.

According to the CCPA, the complaints highlight a pattern of violations of the Consumer Protection Act, 2019, including deficiencies in services, unfair trade practices, and misleading advertisements.

Some of the specific complaints against Ola Electric include:

Delayed deliveries: Many customers (1899 complaints) reported delays in receiving their ordered electric scooters.

Delayed service: The largest number of complaints, 3364 of them, pertained to delays in service and repairs.

Faulty vehicles: Many consumers complained about manufacturing defects, poor build quality, and recurring technical issues in their Ola scooters.

Misleading advertisements: A few customers alleged that Ola's advertisements were misleading, exaggerating the performance, features, or availability of its products.

Poor customer service: Complaints also surfaced regarding unsatisfactory customer service, including difficulties in contacting customer support, delayed responses, and inadequate resolutions to problems.

In response to the show cause notice, Ola Electric has stated the stock exchanges, acknowledging receipt of the notice and assuring its commitment to addressing consumer concerns. The company stated that it would provide a detailed response to the CCPA within the stipulated timeframe, along with supporting documents. It also said the show cause notice will not impact its financial, operational or other activities.

The CCPA has given Ola Electric 15 days to respond to the show cause notice.

The regulatory body may take further action, including ordering corrective measures, depending on the company's response.

To be sure, Ola Electric has revamped its service team to accelerate a service-related overhaul at the company. It also adds more service touchpoints, including certified service partners, to lessen the service load at its service centers.