2024-10-09 10:42:26 :
Khare added that the CCPA’s proactive action follows a show-cause notice and comes in the context of Ola Electric’s alleged non-cooperation as the company faced legal challenges over service delays, product defects and misleading advertising. More and more criticism is coming.
The CCPA’s show-cause notices are based on 9,948 complaints received between September 2023 and August 2024, focusing primarily on late deliveries, defective products and misleading advertising. Ola Electric now has 15 days to respond and issue a notice warning of violations of the Consumer Protection Act, 2019, including unfair trade practices and service defects.
Carey stressed the seriousness of the situation, noting that there had been a spike in complaints on the National Consumer Helpline (NCH) as customer dissatisfaction went unaddressed.
“With such a high number of complaints – more than 10,000 a year, involving issues such as refund delays, service delays, warranty denials and inconsistent performance – this case is an obvious candidate for a class action lawsuit. When we encounter repeated violations like this When a case arises, we will initiate a class action lawsuit after carefully reviewing the facts.”
The CCPA has forwarded more than 10,000 dockets recording complaints received by the National Consumer Helpline to Ola Electric for resolution. “All complaints related to the company have been sent to them for investigation and resolution,” Harley said.
Khare further highlighted that Ola Electric received nearly 10,000 complaints in a year and was an obvious candidate for a class action lawsuit.
“Companies should treat complaints as valuable feedback for improvement – complaints are their ears and eyes. However, one of the disturbing findings is that Ola Electric charges customers even during free service, which is simply unacceptable ” Mint.
Ola Electric’s unresolved complaints range from delayed refunds and service delays to warranty denials and inconsistent performance. Carey noted that complaints about charging customers during free service periods were particularly concerning, saying the practice was unacceptable.
“We cannot leave individual customers to fight companies alone,” she asserted. “In many cases we have had to close complaints without resolution after 45 days, leading to consumer dissatisfaction. If a company fails to resolve an issue, we will ensure they are held to account,” she added.
Mint It was reported in September that the company handles more than 80,000 service-related complaints each month.
Patterns of consumer complaints
The CCPA investigation follows a spike in complaints, with Ola Electric becoming one of the top companies on the National Consumer Helpline (NCH). Major dissatisfactions include:
late delivery: 1,899 complaints about delayed delivery of scooters.
service delay: 3,364 complaints about slow repairs and service.
faulty vehicle: Reports of manufacturing defects, poor manufacturing quality, and recurring technical issues.
misleading advertising: Accused Ola of exaggerating the performance and usability of its products.
Poor customer service: Complaints about difficulty accessing support, delayed responses, and unsatisfactory problem resolution.
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Responding to the show-cause notice, Ola Electric acknowledged receipt of the notice and assured the stock exchange that it is committed to addressing the concerns of consumers. The company said it would provide a detailed response to the CCPA within the stipulated time and guaranteed that the notice would not affect its finances, operations or other activities. To address service-related complaints, Ola has restructured its service team and expanded service touchpoints to include certified service partners to speed up improvements.
The CCPA has dealt with similar cases before, such as those involving misleading claims by coaching institutions. During the pandemic lockdown, many consumers struggled to obtain refunds from airlines, tour operators and tour operators. While the Supreme Court ordered airlines to refund consumers, travel agencies and tour operators did nothing. The CCPA’s intervention resulted in $Refunds of Rs 1,454 crore to consumers.
The CCPA was established under Section 10 of the Consumer Protection Act and has the power to target infringements of consumer rights, misleading advertising and unfair trade practices (including proactive class actions) under Section 18(2)(a).
Interestingly, the government’s FAME-II scheme requires electric two-wheelers to come with a three-year or 20,000-km warranty to be eligible for subsidy. It’s unclear whether the investigation into Ola’s warranty practices puts its subsidy eligibility at risk.
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However, people familiar with the matter revealed Mint “The assurances must be adhered to and not just on paper,” suggesting that the subsidy issue may be reviewed once Ola submits its response and possibly even an appeal.
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