Ola Electric has come under intense scrutiny from the Central Consumer Protection Authority (CCPA) after accumulating thousands of consumer complaints regarding its electric scooters. The CCPA, responsible for safeguarding consumer rights, issued a formal show-cause notice to the Bengaluru-based company on October 3, 2024, for potentially violating multiple provisions of the Consumer Protection Act, 2019. These potential breaches include deficiencies in services, misleading advertisements, and engagement in unfair trade practices, which ultimately led to violations of consumer rights.
According to data collected by the National Consumer Helpline, between September 1, 2023, and August 30, 2024, there were 10,644 complaints lodged against Ola Electric’s scooters. The complaints touched on a wide variety of issues, including delays in service (3,389 cases), delivery delays (1,899 cases), and failures to meet promised service commitments (1,459 cases). In addition to delays, customers reported significant concerns over manufacturing defects, second-hand scooters being passed off as new, and a lack of refunds for canceled bookings. Many customers experienced recurring problems with their vehicles even after receiving service, compounding their frustration.
Other frequent issues highlighted in the notice include overcharging, billing discrepancies, and persistent battery problems, which have raised alarm about the overall quality and reliability of Ola Electric’s scooters. There have also been reports of unprofessional behavior from the company's customer service teams, with many complaints left unresolved, further eroding consumer trust.
Nidhi Khare, Secretary of the Department of Consumer Affairs, confirmed the CCPA’s investigation, emphasizing their focus on the numerous complaints about poor service and inadequate consumer support. She expressed hope that Ola Electric would take immediate steps to address these grievances and restore consumer confidence. Khare reiterated that the company needs to rectify its practices and take responsibility for ensuring better post-sale service to its customers.
The public backlash has not only tarnished Ola Electric’s reputation but has also impacted its financial standing. The company's stock plummeted nearly 9%, hitting a low of Rs 90.26, following the news of government intervention and growing consumer discontent. The escalating criticism has been amplified on social media platforms, with many users voicing their frustrations. A particularly notable incident involved comedian Kunal Kamra, who publicly clashed with Ola’s founder, Bhavish Aggarwal, over the brand’s service issues, further highlighting the scale of dissatisfaction among Ola’s customer base.
As the CCPA continues its investigation, the pressure is mounting on Ola Electric to address the numerous complaints swiftly and effectively. Consumers and investors alike are awaiting the company’s response, which could determine the future trajectory of the brand in the rapidly expanding electric vehicle market. Despite its ambition to lead the EV revolution in India, Ola Electric now faces the challenge of regaining the trust of its customers while ensuring it complies with the country’s consumer protection laws.
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