Ola Electric is facing mounting pressure as the Central Consumer Protection Authority (CCPA) has launched a formal investigation into allegations of “deficiencies” in the company’s products and services, particularly concerning its electric scooters. The inquiry comes in response to a surge of complaints filed against the company, with over 10,644 complaints submitted to the National Consumer Helpline (NCH) between September 2023 and August 2024.

This investigation follows an earlier notice issued by the CCPA after a concerning discrepancy between Ola Electric's claims of high customer satisfaction and the feedback from customers. According to Nidhi Khare, the Secretary of Consumer Affairs, the Bureau of Indian Standards (BIS) has been tasked with verifying Ola Electric’s claims related to customer grievance resolution. The BIS Director General has been instructed to submit a report within 15 days, with the inquiry formally beginning on November 6.

Ola Electric’s claims, as of October 21, suggested that an overwhelming 99.1% of customers were satisfied with the company’s complaint resolution process. However, the CCPA’s probe revealed a stark contrast. In a sample survey of 287 consumers, 130 consumers were successfully reached by NCH call agents, and of these, 79.2% (i.e., 103 consumers) expressed dissatisfaction with the company’s response to their grievances. This finding raises serious concerns about the validity of Ola Electric’s reported satisfaction rate.

Ola Electric has also faced allegations of misleading advertising and unfair trade practices. Complaints suggest that issues remained unresolved even after they were marked as addressed, with some cases being closed prematurely, leaving customers without a satisfactory resolution. These concerns were particularly highlighted by customers who reported defects in the company’s electric scooters, which is a core part of Ola’s business.

In response to the CCPA’s actions, Ola Electric has stated that it has resolved 99.1% of complaints and has provided detailed responses to the show-cause notice issued on October 7. This notice highlighted potential violations of consumer rights, alleging misleading claims about the company's products and services.

As the Bureau of Indian Standards (BIS) investigates the matter further, the future of Ola Electric’s customer service practices remains under scrutiny. The company has not yet commented on the ongoing investigation, but the CCPA's action indicates a growing concern over the company’s consumer relations and the quality of its products.

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