CCPA Imposes ₹71.6 Lakh in Penalties on Coaching Institutes for Misleading Advertisements

Penalties totaling ₹71.6 lakh have been imposed on 22 coaching institutes, with recent actions focusing on false claims regarding UPSC Civil Services Examination (CSE) results for 2022 and 2023.

The Central Consumer Protection Authority (CCPA), under the leadership of Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra, has taken stringent actions against coaching institutes for violating provisions of the Consumer Protection Act, 2019. Penalties totaling ₹71.6 lakh have been imposed on 22 coaching institutes, with recent actions focusing on false claims regarding UPSC Civil Services Examination (CSE) results for 2022 and 2023. Key Penalties and Findings:

Vajirao & Reddy Institute

A penalty of ₹7 lakh was imposed for misleading claims in its advertisements, which included:

• "617 selections out of 933 in UPSC CSE 2022."
• High success rates among top AIR ranks and claims of being India’s “#1 UPSC Coaching Institute.”

CCPA discovered that all 617 successful candidates were enrolled only in the Interview Guidance Programme (IGP), and no information was provided about the specific courses opted by candidates during their preparation. The institute's deliberate omission misled potential students to believe all courses offered had equal success rates.

StudyIQ IAS

A ₹7 lakh penalty was imposed for advertising claims like:

• "120+ selections in UPSC CSE 2023."
• Unsubstantiated promises such as "Success Pakka Offer" and "Selection Pakka Offer."

An investigation revealed that 126 out of the 134 successful candidates were also enrolled in the IGP, with only a handful opting for other courses. StudyIQ IAS failed to substantiate its claims and provide proper documentation for successful candidates, creating a misleading impression about the effectiveness of its advertised courses.

Edge IAS

Edge IAS was fined ₹1 lakh for similar practices. The institute highlighted 13 successful candidates of UPSC CSE 2023 without disclosing that most were enrolled in post-preliminary programs like IGP or Mentoring Courses. This omission deceived potential students about the role of the institute in their success.

Broader Context and Action

Section 2(28)(iv) of the Consumer Protection Act, 2019, defines misleading advertisements, including those that “deliberately conceal important information.” CCPA observed a pattern of institutes using the same successful candidates’ names and photographs in their advertisements to falsely imply regular classroom or broader course success.

The CCPA has issued 45 notices to coaching institutes for similar offenses. In total, penalties of ₹71.6 lakh have been imposed, and many institutes have been directed to cease misleading advertisements immediately.

Consumer Awareness and Protection

The CCPA's actions aim to protect the rights of young and impressionable aspirants, ensuring transparency in the educational services sector. Students and parents are urged to critically evaluate the claims of coaching institutes and verify their authenticity before enrolling.

Moving Forward

The CCPA is intensifying its monitoring of educational advertisements to prevent unfair trade practices and uphold consumer rights. Coaching institutes are being urged to adopt transparent advertising practices that provide potential consumers with accurate information about their programs and results.

This proactive approach seeks to create an ethical landscape in the competitive education sector, enabling aspirants to make informed decisions for their future.