Ola has been in the news with its mounting customer complaints over sub-standard products and after-sales service. Now, the EV startup has been served with a show-cause notice by the Central Consumer Protection Authority (CCPA). This comes at a time when Ola announced an aggressive plan to expand its service centres.
The show-cause notice dated October 3 says that Ola Electric “appears to be in violation of several provisions of the Consumer Protection Act, 2019.” These include deficiencies in services, misleading advertisements, unfair trade practices, and violations of consumer rights. Ola Electric has been asked to respond to the notice within 15 days.
What lead to Ola’s show-cause notice?
The National Consumer Helpline has received 10,644 cases since September 2023 till the end of August this year. These complaints were related to the after-sales service of the e-scooters. Amongst the complaints, 3,389 complaints were related to delays in servicing the scooters, 1,899 complaints were for delays in new scooter delivery, and 1,459 complaints were regarding service promises that were made and not met.
The notice alleges Ola for selling used scooters as new to customers, manufacturing defects, partial or no refund at all for booking cancellations, defects occurring over and over again after servicing, overcharging, defective battery packs and other components, and more.
Ola has acknowledged the receipt of the show-cause notice and has told various media outlets that it will respond. Ola will file a formal response to the CCPA and the notice will not affect its current business or operational activities.
