Consumer protection agency issues show-cause notice to Ola Electric amid spike in consumer complaints

Consumer protection agency issues show-cause notice to Ola Electric amid spike in consumer complaints

2024-10-08 06:22:40 :

The Central Consumer Protection Authority (CCPA) has issued a show-cause notice to Ola Electric, the country’s leading electric two-wheeler manufacturer, regarding state consumer assistance between September 1, 2023 and August 30, 2024 9,948 consumer complaints were received by the hotline.

The complaints range from late deliveries and defective vehicles to misleading advertising and poor customer service, according to the notice.

The CCPA said the complaints highlighted breaches of the Consumer Protection Act 2019, including service defects, unfair trade practices and misleading advertising.

Some specific complaints against Ola Electric include:

Delivery delays: A large number of customers (1,899 complaints) reported delays in receiving the e-scooters they ordered.

Service delays: The highest number of complaints, 3,364, related to service and repair delays.

Defective vehicles: Many consumers have complained about manufacturing defects, poor build quality, and recurring technical issues with Ola scooters.

Misleading advertising: A small number of customers claimed that Ola’s advertising was misleading and exaggerated the performance, functionality or usability of its products.

Poor customer service: Complaints of unsatisfactory customer service also surfaced, including difficulties contacting customer support, delayed responses, and inadequate problem resolution.

In response to the show-cause notice, Ola Electric has told the stock exchanges to acknowledge receipt of the notice and assured that it is committed to addressing the concerns of consumers. The company said it will provide a detailed response and supporting documents to the CCPA within the specified time. It also said the show-cause notice will not affect its financial, operational or other activities.

The CCPA has given 15 days to Ola Electric to respond to the show-cause notice.

Regulators may take further action based on the company’s response, including ordering corrective measures.

To be sure, Ola Electric has restructured its service team to expedite service-related changes in the company. It has also added more service touch points, including certified service partners, to ease the service load on its service centers.

Follow us On Social Media   Twitter/X

Join WhatsApp

Join Now