CCPA orders detailed probe against Ola Electric over consumer complaint resolution practices

The Central Consumer Protection Authority (CCPA) has ordered a comprehensive investigation into Ola Electric following concerns about its consumer complaint resolution practices, sources have told Business Today TV.

The Consumer Affairs Ministry instructed the Director General (DG) Investigation, CCPA’s investigative arm, to initiate this probe last week.

The DG Investigation is expected to examine the nature of the complaints and any deficiencies in services reported against Ola Electric. The DG Investigation will submit the report to CCPA in 15 days, following which a decision will be taken, the source said.

This move came after government authorities found Ola Electric's claim of resolving 99.1 per cent of complaints to be unsatisfactory, raising questions about the effectiveness and accuracy of its consumer service processes.

In a stock exchange filing earlier, the company highlighted its robust mechanism for addressing complaints related to its vehicles. “In fact, we wish to emphasise that out of 10,644 complaints that we received from the CCPA, 99.1 per cent of the complaints were resolved to the complete satisfaction of the customer as per Ola Electric’s robust redressal mechanism,” said Harish Abichandani, chief financial officer of Ola Electric, in the filing.

Out of the total 10,000 plus complaints, 3,364 pertained to slow service and repairs, 1,899 were related to delayed deliveries of Ola’s electric scooters, and 1,459 highlighted unfulfilled service promises, leading to widespread consumer dissatisfaction. Additional complaints pointed to misleading advertisements that exaggerated the performance, features, and availability of its products.