Government To Probe Ola Electric Over Service And Product Standards

Probe on Ola Electric: The top product certification agency of India, the Central Consumer Protection Authority (CCPA) will be investigating Ola Electric. The electric scooter manufacturer will be investigated for the deficiency in service standards and product issues, India's consumer affairs secretary told Reuters on Thursday. Last month, the Central Consumer Protection Authority (CCPA) sent Ola Electric a notice seeking an explanation from the SoftBank-backed company after the consumer rights agency received an unusually high 10,000 complaints. It reflected a widespread dissatisfaction with the electric scooter's service quality.Why is CCPA probing Ola Electric?The CCPA issued a show cause notice to Ola Electric and cited the misleading advertisements, violation of consumer rights, and unfair trade practices. The authority gave a period of 15 days to the electric two-wheeler manufacturer to respond to the notice. Ola in a regulatory filing confirmed that the company provided all the clarifications. Ola, India's top e-scooter maker, responded that it had resolved 99.1 per cent of the complaints. After reviewing that response, the CCPA has now asked the Bureau of Indian Standards (BIS) to conduct a detailed investigation into the matter, Consumer Affairs Secretary Nidhi Khare said on Thursday.Ola Electric did not immediately respond to a Reuters email seeking comment. The complaints were mostly for "minor" issues, Ola's founder Bhavish Aggarwal said on an earnings call last week. "Two-thirds of it actually are just minor issues like loose parts or customers unfamiliar with the software used," Aggarwal said.The rising complaints and ensuing regulatory scrutiny have cast a shadow on the electric-scooter manufacturer, following its stellar market debut in August. Ola Electric's shares are down about 7.6 per cent from their listing price of Rs 76. On the day, its shares were down about 1 per cent, while auto stocks. NIFTYAUTO had risen 0.5 per cent. (with agency inputs)

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Government To Probe Ola Electric Over Service And Product Standards

The Central Consumer Protection Authority (CCPA) will be investigating Ola Electric for the deficiency in service standards and product issues.

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