Ola Electric in trouble: Consumer watchdog orders probe into complaints

In a sign of growing troubles for Ola Electric, the Central Consumer Protection Authority (CCPA) has ordered a detailed probe into alleged “defects” in the company’s services and products, particularly its scooters. This comes after Ola responded to a previous regulatory notice regarding unresolved customer grievances.

The apex consumer rights watchdog has directed the Bureau of Indian Standards (BIS) to verify the company’s claims about resolving customer grievances, Consumer Affairs Minister Nidhi Khare said on Thursday.

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The BIS Director-General, who serves as ex-officio Director-General of the Investigation, has been directed to submit a report within 15 days and the investigation was officially launched on 6 November.

Ola Electric did not immediately respond to a request for comment Thursday.

The investigation was prompted by a surge in complaints against Ola Electric received to the National Consumer Helpline (NCH) between September 2023 and August 2024, with a total of 10,644 complaints.

In its reply on October 21, Ola Electric claimed that 99.1 per cent of its customers were satisfied with its complaint resolution process. The CCPA subsequently contacted a sample of consumers to solicit their feedback on grievance redressal.

“NCH call agents called 287 consumers and 130 consumers were connected, of which 103 (79.2%) consumers were not satisfied with the company’s response,” said an official who requested anonymity. “This is just a sample. Test to verify Ola’s claims. If they claim 99% satisfaction, it should be reflected in the cross-validation.”

The official added that many customers reported that even after complaints were resolved, problems persisted and some cases were closed prematurely without being satisfactorily resolved.

In a regulatory filing, Ola Electric maintained that it has resolved 99.1% of complaints filed with the CCPA. The company also said it had provided a comprehensive response to the CCPA’s show-cause notice issued on October 7, which outlined alleged violations of consumer rights, misleading advertising and unfair trade practices.