Ola fined ₹10 lakh for misleading customers

The Central Consumer Protection Authority (CCPA) has imposed a fine of ₹10 lakh on Ola. According to a report by Dainik Bhaskar, the authority has also ordered the company to immediately remove the 'tip' feature from its application. Ola is operated by ANI Technologies Private Limited.

This order was issued by the CCPA on November 10. During the investigation, the authority found that Ola was misleading its customers. Messages asking customers to give tips were displayed on the company's application, which the authority termed as an unfair trade practice.

Providing further details on the matter, the report stated that Ola provided customers with an option to give an advance tip ranging from ₹10 to ₹50 on every ride. This practice was considered against the interests of consumers and a misleading process, leading the authority to decide on strict action.

The Central Consumer Protection Authority has ordered Ola to comply with this order within the next 15 days and submit a compliance report. The company must complete the process of removing the tip feature within the stipulated timeframe and inform the authority.

In the entire incident, the authority clarified that no company can lure or mislead customers in a way that wrongly affects their financial capacity or forces them to make unwanted payments. The advance tip method implemented by Ola has been placed in this category.

Now, along with paying the fine, the company will have to make changes to its app's functioning. If the company fails to submit the report within the prescribed 15 days or does not remove the feature, stricter action may be taken against it. According to consumer protection rules, it is mandatory for any digital platform to maintain transparency, and in Ola's case, a lack of this transparency was observed.