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Tag: CCPA

  • CCPA Fines Rapido INR 10 Lakh for Misleading Advertisement

    The Central Consumer Protection Authority (CCPA) has ordered Rapido (Roppen Transportation Services Pvt. Ltd.) to pay a penalty of INR 10 lakh for printing deceptive advertisements and engaging in unfair trade practices, in a move to defend consumer rights.

    Misleading ‘Auto in 5 Min’ Promotion Explained

    The Authority has additionally instructed the online ride-hailing platform to guarantee that any customer who used the “AUTO IN 5 MIN OR GET INR 50” promotion and did not obtain the promised INR 50 compensation will receive a complete reimbursement of the money without any further conditions or delays.

    Consumer Complaints Against Rapido Surge

    Rapido’s deceptive advertising, which promised customers “AUTO IN 5 MIN OR GET INR 50” and “Guaranteed Auto”, was brought to the attention of the CCPA. Following a thorough analysis, the CCPA determined that these commercials were unfair to consumers, untrue, and misleading. As a result, the CCPA ordered that the deceptive commercials be removed immediately.

    Shocking Revelation by National Consumer Helpline (NCH)

    Complaints
    Against Rapido

    •575 complaints against Rapido between
    April 2023 and May 2024.

    •1,224 complaints between June 2024
    and July 2025.

     According to the CCPA’s investigation, Rapido’s adverts featured the notice “T&C Apply” in an incredibly small and unreadable font. Even then, the reward was “up to INR 50” and not necessarily precisely INR 50. The promised INR 50 benefit was not actual currency (in rupees), but rather “Rapido coins”. These coins had a seven-day validity period and could only be used for Rapido bike rides. These limitations significantly diminished the offer’s value and essentially forced customers to switch to another Rapido service in an unreasonable amount of time.

    Customers were deceived into selecting Rapido by these omissions, which gave the false sense of guaranteed service. Furthermore, the Terms and Conditions made clear that individual captains, not Rapido, were providing the guarantee, even though the advertisement made the bold claim, “Auto in 5 minutes or get INR 50.” By deceiving customers about the precise guarantee stated in the advertisement, this paradoxical position sought to shift responsibility away from the business.

    What the Advertising Guidelines Say?

    According to the Guidelines for Prevention of Misleading Advertising and Endorsements, 2022, advertising cannot utilise disclaimers to rectify a misleading claim, hide important facts, or contradict the main claim.

    In Rapido’s case, the statements “Auto in 5 min or get INR 50” and “Guaranteed Auto” gave the idea that customers would always be charged ₹50 if the car was not delivered within 5 minutes.

    Nevertheless, the important restriction that the benefit was limited to “up to INR 50” and only in the form of Rapido coins with a brief validity was either left out or not made as prominently known. The commercial was misleading due to its lack of clarity and concealment, which was a clear violation of the guidelines.

    Quick
    Shots

    •Ads promised “AUTO IN 5 MIN OR GET
    INR 50” and “Guaranteed Auto”, but compensation was unclear and misleading.

    •Rapido directed to reimburse all
    customers who were denied the promised INR 50 benefit.

    •“T&C Apply” displayed in tiny,
    unreadable font; compensation was Rapido coins, not actual money.

    •Rapido coins valid for 7 days and
    usable only for bike rides, reducing consumer value.

  • The CCPA will Investigate Ride-Hailing Apps for Having Different Prices

    On December 26, Union Consumer Affairs Minister Pralhad Joshi ordered the Central Consumer Protection Authority (CCPA) to conduct a thorough investigation into the discrepancy in taxi fares that ride-hailing platforms display simultaneously on Android and iOS devices for identical rides. This was in response to a media report about the issue. He has instructed the consumer affairs division to investigate additional industries, like online ticket booking and food delivery applications.

    The minister tweeted, tagging the media report, that the taxi aggregators are allegedly employing differential pricing based on the factors listed in the article below, which on the surface appears to be an unfair trading practice. If that is the case, this is a flagrant violation of the consumer’s right to know. “I have instructed @jagograhakjago through CCPA to carry out a thorough investigation into this and submit a report as soon as possible,” he added. I’ve requested that the department investigate more areas, such as apps for online ticket booking and food delivery. Authorities stated that they will gather the proof and ask the taxi aggregators and other platforms that deal with online ticketing and food delivery for their reaction.

    Reports’ Citing & Uber’s Response

    Joshi was replying to a post that featured a news clip about how the prices of taxi rides on Android and iPhone handsets differed. According to the report’s citing, iPhone users pay more than Android users for transportation to the same destination from three distinct sites in Chennai. This comes a day after a user highlighted a notable price variation when using an Android and an iPhone to book the same ride on Uber in a post on LinkedIn. Uber denied the claim that the “observed fare differences” were caused by the type of phone used as the matter grew into a controversy. The aggregator clarified that the pricing is affected by the numerous variations between these two rides. These requests have distinct pick-up, ETA, and drop-off locations, which will result in different fares. Uber does not adjust trip costs according to the manufacturer of a rider’s mobile device.

    Startups Under the Strict Scanner

    The CCPA has recently taken action against startups and consumer internet platforms for violating consumer protection regulations. This development has occurred at a particular juncture. It began a thorough investigation into many customer complaints against Ola Electric, an electric vehicle manufacturer, in October. Eleven rapid commerce and e-commerce businesses, including Blinkit, Zepto, and Meesho, were given notices for violating metrology standards in the same month. Before that, in April, the CCPA ordered the swift commerce companies to provide evidence for their “10-minute” delivery claims.

    FRAI Urges Government to Empower Kirana Stores with Technology
    FRAI urges the government to provide advanced technology platforms for Kirana stores, enabling them to compete effectively with quick commerce (Qcom) companies.
    StartupTalkyNitin Konde

  • CCPA Expands Investigation into Ola Electric and Requests More Details

    The Bhavish Aggarwal-led company has been asked to provide more information by the Central Consumer Protection Authority (CCPA), which is looking into consumer complaints against Ola Electric. Ola Electric stated in an exchange filing that the consumer protection agency had asked the business for more information and documents. Ola Electric received a show-cause notice from the CCPA in October of this year due to claims of poor customer service, misbehaviour, delayed service and delivery, defective car sales, and numerous other consumer complaints. Ola Electric has confirmed that it will comply with the agency’s 15-day deadline for submitting its response.

    Ola Electric Claimed of Resolving 99.1% Cases

    On October 21, Ola Electric responded to the notification by stating that 99.1% of the complaints it had received had been handled. But according to a report last month, the Authority discovered that 80% of the purported resolutions were never put into practice. It is important to note that for a significant portion of this year, complaints on social media regarding the functionality of Ola Electric scooters have kept mounting.

    Customers complained about unresolved hardware and software problems, poor service, and concerns with the company’s staff on social media platform X. Ola Electric promised to provide a one-day repair guarantee and a backup scooter if the problems are not fixed within a day in order to address this problem earlier this year. The business announced earlier this week that it intends to double its network of corporate-owned stores to 4,000 by December 20 as part of this strategy. According to the company, Ola Electric will run India’s largest EV distribution network, spanning every pin code in the nation, with more than 3,200 new stores scheduled to open.

    Gig and S1 Z Range by Ola Electric

    Given that India’s gig economy is expected to treble in size and employ over 10 million people in the next years, Ola Electric unveiled a new line of reasonably priced e-scooters last month, with pricing starting at less than INR 40,000. Ola Electric’s stock rose 5.67% and closed the day at INR 73.47 on the BSE, reflecting the positive market reaction.

    The new range includes the Ola Gig, which costs INR 39,999 and is designed for gig workers who travel shorter distances. The S1 Z series offers an affordable alternative to the original S1 model, with a starting price of INR 59,999. However, going by current allegations and investigations, Ola Electric needs to battle really hard to attract customers towards these launch products. But in the midst of all of this, Ola Electric’s stock has recently surged on the exchanges. The stock has rebounded in recent weeks after plunging to all-time lows in November. On the BSE, shares of Ola Electric closed the trading session on 5 December 2024 up 0.11% at INR 98.50.

    Ola Electric Ventures Into Gig Market with E-Scooter Under INR 40K
    Ola Electric enters the gig market with plans to launch an affordable e-scooter priced under INR 40,000, aiming to support gig workers and expand EV adoption.
    StartupTalkyNitin Konde

  • Several Rapid Commerce Companies Receive Notices from the CCPA for Disclosure Issues

    Companies like Zepto, Blinkit, and nine others have received notices from the Central Consumer Protection Authority (CCPA) as part of a significant crackdown on a number of e-commerce and quick-commerce operators. According to media reports, complaints regarding suspected breaches of the Legal Metrology Act’s Mandatory Declaration Rules prompted the issuance of these notices.

    For these offences, the CCPA has issued notices to eleven businesses operating in this domain. Some vendors have listed goods for human consumption without mentioning the best before or expiration dates, or without including the manufacturing date. In several cases, items were marketed without following proper labelling or packaging guidelines. These are grave offences. According to a CCPA official, the regulatory agency has requested that these businesses reply to the notices. 

    According to sources, Swiggy, Instamart, Meesho, MyGlamm, and Snapdeal are among the other businesses that have received these notifications. The Ministry of Consumer Affairs oversees the Central Consumer Protection Authority, or CCPA.

    Consumer and Consumer Forums Highlighted the Matter

    Consumer forums, including LocalCircles, and consumer concerns prompted these notifications. According to Sachin Taparia, the founder of LocalCircles, hundreds of customers have complained on their website regarding these violations. Most of them mentioned that they have received goods that are nearing their best before or expiration date through fast commerce and other e-commerce platforms.

    Following the required validation and due diligence, LocalCircles authorities discovered that numerous online platforms are in violation of the 2017 Legal Metrology Packaged Commodity Rules Amendment, which mandates that online platforms reveal the best before date of packaged goods.

    Additionally, LocalCircles polled internet shoppers nationwide to see if they could see the best-before dates on products intended for human consumption displays. According to the poll, 57% of these customers had trouble finding this information, up from 50% in 2023.

    Who is Central Consumer Protection Authority?

    Established under the Consumer Protection Act, 2019, the CCPA went into effect on July 24, 2020, and is designed to regulate issues pertaining to consumer rights violations, unfair trade practices, and deceptive or false advertisements that harm consumers’ interests and those of the general public.

    The CCPA maintains regional offices throughout India in addition to its headquarters in Delhi, the nation’s capital. A Chief Commissioner and other Commissioners chosen by the Central Government oversee the CCPA.

    The rule mandates that important product facts, such as the maximum retail price, weight, manufacturer information, expiration date, and consumer grievance addresses, be shown on packaged goods by both online and physical merchants.

    In India’s largest cities, quick commerce—which provides incredibly quick delivery of groceries and everyday necessities—has become immensely popular, drawing both venture capital investment and customers. The regulatory action comes after CCPA Chief Commissioner Nidhi Khare recently stated that authorities were looking into whether rapid commerce platforms were complying with disclosure laws. As part of larger initiatives to safeguard consumer interests in digital commerce, the Consumer Affairs Ministry had previously hinted that it would take action against businesses deemed to be in violation of these rules.

    Ola Electric Claims 99% Resolution of Customer Complaints
    Ola Electric resolves 99.91% of 10,644 customer complaints, including issues like, delivery delays and service failures, as reported into the CCPA in September 2024.
    StartupTalkyNitin Konde

  • Ola Electric Asserts that 99% of Consumer Complaints are Resolved

    According to Ola Electric, out of the 10,644 customer complaints it has received thus far, 99.91% have been handled and resolved successfully. In a regulatory filing on September 21, 2024, the manufacturer of electric two-wheelers notified the Central Consumer Protection Authority (CCPA) of the latest developments on long-pending customers’ issues. The CCPA issued a show-cause notice to the Bengaluru-based company earlier this month in response to subpar conditions at its service centres throughout the nation.

    The Department of Consumer Affairs’ National Consumer Helpline reports that between September 1, 2023, and August 30, 2024, 10,644 complaints were filed against Ola e-scooters. Of these, 1,899 deal with new vehicle delivery delays, 3,389 with servicing delays, and 1,459 with unmet promises of services.

    The Claims Made by Ola in its Filing

    Ola Electric said in a regulatory filing that it would like to make it clear that it has a strong system in place to handle concerns about its electric two-wheeler. In reality, the company would like to highlight that, thanks to Ola Electric’s strong redressal system, 99.1% of the 10,644 complaints it received from the CCPA were resolved to the full satisfaction of the consumer.

    A notice from the Automotive Research Association of India (ARAI) was also addressed by the company, which is run by Bhavish Aggarwal. Prior to the company’s BOSS sale, the notification raised concerns about the price plan of its S1 X 2 kWh scooters. Ola Electric gave clients an invoice dated October 6 that showed a INR 5,000 discount and stated that it had not changed the prices during the sale. Additionally, it provided a screenshot taken from its app, verifying that the scooter’s cost had not altered.

    What Exactly Happened Earlier?

    With as many as 80,000 customer complaints each month going viral on social media and stories of Ola Electric vehicles collecting dust at repair locations, this calculated approach is a response to growing customer unhappiness. Both lawmakers and consumer watchdogs were drawn to the outcry.

    Ola Electric was recently served with a show-cause notice by the Central Consumer Protection Authority (CCPA), which included possible abuses of consumer rights, deceptive advertising, and unfair business practices. More than 10,000 outstanding after-sales service concerns were highlighted in the notification.

    Ola Electric has made plans to grow its network of service centres in response to these problems, with the goal of increasing the number from 400 to 1,000 by the end of the year. Industry experts caution that expanding the number of centres alone might not address the main problem. An analyst said, “Instead of growing, the company should concentrate on enhancing the quality of current service stations.”

    The CCPA Has Issued a Show Cause Notice to Ola Electric Due to Deceptive Advertising
    Following the Central Consumer Protection Authority’s (CCPA) show-cause notice to the business on 7 September 2024, shares of newly listed Ola Electric Mobility dropped 6.17 percent in intraday trading to INR 85.21 on 8 September 2024.
    StartupTalkyNitin Konde

  • Customers’ Advocacy Group CCPA Mandates Ola to Provide Refund Options

    On October 13, 2024, the Central Consumer Protection Authority (CCPA) announced that Ola, a ride-hailing company, has been ordered to make improvements that will benefit customers. These modifications include giving refund alternatives and giving receipts for auto rides. Chief Commissioner Nidhi Khare of the CCPA noted that Ola’s no-questions-asked refund policy did not give customers the option to get bank account refunds; instead, it only offered coupon tickets for future rides.

    The CCPA declared in a statement that “this practice violates consumer rights.” “Using this facility to take another ride is not an incentive for customers to use the company’s no-question-asked refund policy.”

    The app displays the notice, “Customer invoice for auto rides will not be provided due to changes in Ola’s auto service T&Cs,” if a customer tries to view an invoice for an auto ride that they booked on Ola, according to the regulator.

    As per CCPA, failing to provide a bill, invoice, or receipt for the products sold or services rendered qualifies as an “unfair trade practice” for the purposes of the Consumer Protection Act of 2019. It has instructed the taxi aggregator to provide its clients with bills.

    Who is Central Consumer Protection Authority?

    Established under the Consumer Protection Act, 2019, the CCPA went into effect on July 24, 2020, and is designed to regulate issues pertaining to consumer rights violations, unfair trade practices, and deceptive or false advertisements that harm consumers’ interests and those of the general public.

    The CCPA maintains regional offices throughout India in addition to its headquarters in Delhi, the nation’s capital. A Chief Commissioner and other Commissioners chosen by the Central Government oversee the CCPA.

    Ola Aligning Itself with CCA

    In accordance with the Consumer Protection Act of 2019, the regulator further ordered Ola to provide bills or invoices for every auto ride that was scheduled through its platform, referring to the lack of such evidence as an “unfair trade practice.”

    Ola has made a number of changes in response to the CCPA’s intervention. These include posting the contact information of grievance and nodal officers on its website, making cancellation policies and fees obvious at the time of booking, expanding the list of options for reasons why a ride may be cancelled, and making the fare component breakdowns available to the public.

    The addresses of the pickup and drop places were displayed to drivers, and the payment periods were adjusted to enable drivers to get paid quickly.

    What Leads CCPA to Intervene?

    From January to October 2024, the CCPA received 2,061 complaints against Ola. The most common concerns included overcharging, delays in refunds, and troubles with drivers.

    “The Consumer Protection Act (CCPA) has demonstrated unwavering commitment to upholding Ola’s adherence to the legal framework designed to safeguard consumer rights by means of its regulatory intervention,” the regulator remarked.

     This action is taken in response to the CCPA’s increased examination of digital platforms in order to safeguard consumer interests in the quickly expanding ride-hailing and e-commerce industries.

    The CCPA Has Issued a Show Cause Notice to Ola Electric Due to Deceptive Advertising
    Following the Central Consumer Protection Authority’s (CCPA) show-cause notice to the business on 7 September 2024, shares of newly listed Ola Electric Mobility dropped 6.17 percent in intraday trading to INR 85.21 on 8 September 2024.
    StartupTalkyNitin Konde

  • The CCPA Has Issued a Show Cause Notice to Ola Electric Due to Deceptive Advertising

    Following the Central Consumer Protection Authority’s (CCPA) show-cause notice to the business on 7 September 2024, shares of newly listed Ola Electric Mobility dropped 6.17 percent in intraday trading to INR 85.21 on 8 September 2024.

    In an exchange filing, Ola said that the CCPA has given the company 15 days to reply to the show-cause notice. The business promised to reply to the notification and provide the necessary documentation within the allotted period.

    The CCPA has issued a show-cause notice for suspected unfair trading practices, deceptive advertising, and violations of consumer rights.  The company will respond to the CCPA’s show cause notice. At the moment, the Show Cause Notice has no bearing on the business’s operations, finances, or other activities. Additionally, the management of the company stated in an exchange filing that the notice did not impose any penalties or monetary fines. 

    One of India’s leading EV companies, Ola Electric, is committed to building vertically integrated technology and production capacity for EVs and their parts, such as battery cells. At the Ola Future Factory, it manufactures EVs as well as necessary parts like motors, battery packs, and vehicle chassis.

    Company’s Recent Market Performance

    The Indian electric two-wheeler company recorded its lowest monthly sales of the year in September as its dominance faded due to new competition from smaller firms and issues with the servicing network. In September 2024, Ola Electric sold 23,965 units, marking the second consecutive month that the company’s month-over-month (M-o-M) sales have decreased. According to research, its market share dropped from above 50% in April to 27% in September for five consecutive months due to its declining M-o-M sales.

    Bajaj Auto and TVS Motor both reported increases in their market shares for five consecutive months during this time, closing the sales gap.

    Ola’s declining sales and frequently undercutting prices present additional difficulties for the business’s financial performance. It hasn’t made any money yet.

    Kamra and Aggarwal Locking Horns on X

    Now, the issue has gone to X, where stand-up comedian Kunal Kamra has questioned Ola’s service by using a tweet from Ola CEO Bhavish Aggarwal that included an image of the Ola Gigafactory.

    In the tweet, Kamra asked if Indian customers had a voice. Are they deserving of this? Is this how Indians will adopt EVs? Two-wheelers are the livelihood of many daily wage labourers. If you have a problem with OLA Electric, please share your tale here, tagging everyone. The result was a prolonged verbal sparring match between comedian Kunal Kamra and Ola CEO Bhavish Aggarwal. Kamra didn’t stop here; he went further and tagged Nitin Gadkari, Union Minister for Road Transport & Highways, Government of India, in the tweet. 

    Bhavish Aggarwal: Education | Personal Life | Success Story
    Explore the inspiring journey of Bhavish Aggarwal, the founder and CEO of Ola, as he navigates the dynamic world of technology and transportation. Discover about Bhavish Aggarwal’s education, parents, age, and more.
    StartupTalkyTejas Mundhada