Ola And Uber Gets Notice From CCPA Over Pricing Disparity on Apple, Android Phones

Ola and Uber, the companies providing cab services through the app, have faced problems due to alleged different pricing on Android and Apple smartphones. The Central Consumer Protection Authority (CCPA) has sent notices to both these companies. India is one of the big markets for Uber.

Consumer Affairs Minister, Pralhad Joshi said in a post on social media platform X that Ola and Uber have been served notices by CCPA. He said he will direct CCPA to investigate the issue of differential pricing strategies in other segments like food delivery and online ticketing portals. Many users on social media had complained that these companies providing cab services charge higher prices from iPhone users as compared to smartphones running on Android operating system.

Recently Joshi had said that this business method is a big violation of consumer rights. In October last year, CCPA had issued a show cause notice to Ola Electric, one of the largest electric two-wheeler companies, over alleged violation of consumer rights, misleading advertisements and unfair business practices. After this, this company was asked to provide additional documents regarding the notice. Earlier this month, CCPA again sought information from the company in this regard.

The Karnataka High Court had given the company six weeks to respond to the CCPA’s previous letter. The CCPA had conducted a preliminary investigation into a large number of complaints against Ola Electric. In this, violations related to violation of customers’ rights, misleading advertising and deficiencies in service were found. After this, CCPA Director General of Investigation was instructed to investigate this matter. Ola Electric had argued that the officer issuing the notice was not authorized under the Consumer Protection Act. The company had said that the officer who issued the notice has not been given the post of director or additional director. On this, the High Court had clarified that the Director General of CCPA has authorized an officer of the rank of Senior Director to conduct the investigation.