Trouble for Ola Electric: Consumer watchdog orders probe into complaints

Signalling mounting trouble for Ola Electric, the Central Consumer Protection Authority (CCPA) has ordered a detailed probe into alleged “deficiencies” in the company’s services and products, specifically regarding its scooters. This move follows Ola’s response to earlier regulatory notices on unresolved customer grievances.

The top consumer rights regulator has directed the Bureau of Indian Standards (BIS) to verify the company’s claims regarding its resolution of customer grievances, consumer affairs secretary Nidhi Khare said on Thursday.

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The BIS director general, serving as ex-officio Director General of Investigation, has been instructed to submit a report within 15 days, with the inquiry formally initiated on 6 November.

Ola Electric did not immediately respond to requests for comment on Thursday.

The investigation was triggered by a surge of complaints—10,644 in total—filed against Ola Electric with the National Consumer Helpline (NCH) from September 2023 to August 2024. 

Ola Electric, in a response dated 21 October, claimed that 99.1% of customers reported satisfaction with its complaint resolution process. The CCPA had then reached out to a sample of consumers to seek their feedback on grievance redressal.

“Of 287 consumers, the NCH call agents called, 130 consumers were connected, and of which (79.2%) 103 were not satisfied with the company’s response,” said an official, requesting anonymity. “It was just a sample testing to verify the claims of Ola. If they are claiming 99% satisfaction, it should have also reflected in the cross-verification.”

Many customers reported that issues persisted even after complaints were addressed, with some cases being closed prematurely without satisfactory resolution, the official added.

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In a regulatory filing, Ola Electric maintained that it had resolved 99.1% of the complaints lodged with the CCPA. The company also said that it had provided comprehensive responses to a show-cause notice issued by the CCPA on 7 October, which outlined alleged consumer rights violations, misleading advertising, and unfair trade practices.