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New Delhi: The Central Consumer Protection Authority (CCPA) is examining complaints filed by consumers against BluSmart cabs, after the company suspended operations without any prior notice, two people said.
The move comes amid rising refund claims and unresponsive customer support despite pending bookings and unused wallet balances.
The CCPA is closely looking into the nature of grievances, particularly those related to digital payments and potential violation of consumer rights.
As per the first person, the CCPA is assessing whether there has been a deficiency in service or unfair trade practices.
“We are examining the complaints received against BluSmart on the National Consumer Helpline (NCH) and will take appropriate action against the company,” said the first person.
“At the preliminary level, it has come to our notice that most of the complaints are related to refund issues involving payments made to the BluSmart wallet and cancellation of rides,” the person said, adding that the authority is also considering taking suo motu cognizance of the matter by scanning complaints raised through social media posts.
“The CCPA will ensure refunds to consumers, as was successfully done in the case of airfare refunds for tickets cancelled during the covid-19 period,” said the second person.
As reported by Mint on 10 March 2024, the CCPA had helped facilitate refunds totaling ₹1,453 crore for air tickets booked during the pandemic from travel aggregators, including Yatra, MakeMyTrip, ClearTrip, EaseMyTrip, Ixigo, and Thomas Cook.
MakeMyTrip had refunded the entire amount of ₹978 crore to consumers, followed by EaseMyTrip, which cleared all pending dues amounting to ₹232 crore. ClearTrip returned ₹174 crore, while Ixigo refunded ₹46 crore.
Legal expert Manish K. Shubhay explained that in the case of BluSmart, which has become non-operational, getting refunds could get challenging.
“The CCPA cannot directly process refunds on behalf of the company but can initiate action under the Consumer Protection Act. If the company has any remaining assets or if payments were routed through third-party wallets or aggregators, the CCPA can direct those parties to process refunds,” said Shubhay, partner at The Precept-Law Offices.
In more serious cases, it can recommend proceedings through consumer commissions or insolvency tribunals, said Shubhay.
BluSmart, a startup that positioned itself as an eco-friendly alternative in the app-based taxi segment, has not issued a formal statement on the reason for the sudden disruption.
Social media has been flooded with complaints from customers claiming they are unable to book rides, seek refunds, or even access basic customer services. Some users have also flagged that money loaded into in-app wallets remains stuck, with no clear mechanism for withdrawal or reimbursement.
Consumer protection law in India
India’s consumer protection regime has been strengthened in recent times. The Consumer Protection Act of 1986 was replaced by the Consumer Protection Act of 2019 to modernize the framework governing consumer protection in the era of globalization, technology and e-commerce.
The CCPA’s actions have helped curb misleading advertisements to some extent, including those against well-known entities. However, its guidelines continue to be violated, though penalties have been levied for such violations.
Queries emailed to the Consumer Affairs Ministry and BluSmart remained unanswered until press time.
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