Corporate

Ola Electric Receives Show Cause Notice from CCPA, Company to Respond in 15 Days 

The show cause notice has been issued by the CCPA for alleged violation of consumer rights, and unfair trade practices

Ola Electric
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The Central Consumer Protection Authority has issued a show cause notice to Ola Electric. The company has been given a timeline of 15 days to respond to the notice. 

In an exchange filing, the company highlighted that they would respond to the complaint in the given time frame with the necessary supporting documents. The show cause notice has been issued by the CCPA for “alleged violation of consumer rights, misleading advertisement, and unfair trade practices.”. 

Ola Electric also mentioned in the filing that the show cause notice would not have any financial or operational impact on the company. Read: Ola Electric Share Price Falls Further Amid Bhavish-Kamra Spat

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Ola Electric's Customer Service Crisis

This is coming at a time when there has been a persistent increase in complaints by customers about customer care service of Ola Electric. Netizens have also taken to social media platform X where they complained about the poor service center quality of the company. 

“I own an Ola S1 Pro, and it’s been a frustrating experience. The scooter stops suddenly while riding, and when I attempt to go over speed breakers, it shuts down and prompts me to restart. I've visited the service center, but they only offer slots that are impossible to book,” wrote a user on X. 

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Some customers have also alleged that the company is running in monopoly and not listening to the voices of customers, with some highlighting that their insurance claims have been ignored. A Mint article published in September 2024 highlights that the company receives around 80,000 complaints per month. Additionally, the number of complaints increases to around 6,000–7,000 per day. This, in turn, leads to long delays in services and frustration amongst consumers. 

Meanwhile, recently, Ola CEO Bhavish Aggarwal engaged in a war of words on social media platform X with comedian Kunal Kamra. The issue started after Kamra mentioned in a post tagged the official handle of the Department of Consumer Affairs, Government of India, and union minister Nitin Gadkari and criticised the inadequate service of the company. He wrote on X, “Do Indian consumers have a voice? Do they deserve this? Two wheelers are many daily wage workers lifeline."

This turned into name-calling, with Aggarwal mentioning that Kamra failed as a comedian, and that if Kamra was this concerned about Ola Electric, he should come and help the company out in their service center. Meanwhile, after the show cause notice has been issued against Ola Electric, Kamra wrote on X in a sarcastic tone that the CCPA is protecting consumers instead of celebrating Indian businesses'. He sarcastically sighed that if the CCPA wants to protect consumers so much, they should go and do it in another country instead of India. 

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