CCPA Cracks Down on Misleading Ads in Coaching Sector, Issues 49 Notices

The CCPA, under its enforcement mandate, has issued 49 notices and imposed a penalty of ₹77.60 lakhs on 24 coaching institutions over the past three years.

In a decisive move to safeguard students and uphold transparency in India’s booming coaching industry, the Central Consumer Protection Authority (CCPA) has issued fresh warnings and legal notices to multiple coaching centres across the country. These actions come in response to repeated violations of the Consumer Protection Act, 2019, and the newly issued Guidelines for the Prevention of Misleading Advertisements in the Coaching Sector, 2024.

With the announcement of results for major national-level entrance exams such as IIT-JEE and NEET, the CCPA has identified widespread non-compliance among coaching centres. Many institutions are found to be engaging in misleading advertising, false promises, and unfair trade practices—directly infringing upon the rights of consumers, particularly students and their families.

New Guidelines Target Misleading Ads and Unfair Practices

The Guidelines for the Prevention of Misleading Advertisements in the Coaching Sector, released on 13th November 2024, aim to enhance the accountability and ethical standards of coaching centres. These guidelines are designed to prevent the exploitation of students through exaggerated or false advertising.

Key provisions of the 2024 guidelines include:

• Prohibition of Guaranteed Success Claims: Coaching centres are barred from promising guaranteed ranks, selections, or placements in competitive examinations such as JEE, NEET, or UPSC.

• Mandatory Disclosure in Ads: Every advertisement must clearly mention the student's name, rank, course type, and whether the student paid for the course.

• Prominent Disclaimers: All disclaimers must be displayed in the same font size and prominence as other important information.

• Ban on Concealment of Key Information: Coaching centres must not hide or omit essential details that could mislead students and parents.

• Fair Trade Practices: Centres are required to provide all promised services and ensure timely refunds in case of cancellations or service deficiencies.

Violations and Legal Action

The CCPA, under its enforcement mandate, has issued 49 notices and imposed a penalty of ₹77.60 lakhs on 24 coaching institutions over the past three years. These notices cover a wide range of violations including:

• Assurance of Rank or Selection

• Misleading Advertisements

• False Success Claims

• Deficiency in Services Provided

• Admission Cancellation Without Refund

• Partial or No Fee Refunds

• Consumer Rights Violations

Many of these practices fall under the violation of Section 2(28) and Section 2(47) of the Consumer Protection Act, 2019, which define misleading advertisements and unfair trade practices respectively.

Sector-Wide Scrutiny and Enforcement

The CCPA has taken action against coaching centres preparing students for various national competitive exams, including:

• UPSC Civil Services Examination (CSE)

• Joint Entrance Examination (IIT-JEE)

• National Eligibility cum Entrance Test (NEET)

• RBI and NABARD recruitment exams

These actions underscore the CCPA's zero-tolerance approach toward any form of deception or malpractice in the coaching sector, reaffirming its commitment to ensuring that no false or exaggerated claims are made to lure students.

Protecting Students and Empowering Parents

The coaching industry in India, valued at several billion rupees, plays a pivotal role in the educational journey of millions. However, the aggressive marketing tactics adopted by many centres have come under increasing scrutiny. The newly enforced guidelines aim to build a more transparent, ethical, and accountable ecosystem, empowering students and parents to make well-informed choices without falling prey to manipulative advertisements.

CCPA’s ongoing efforts not only serve as a warning to erring institutions but also act as a deterrent to the industry at large, urging coaching centres to align their practices with consumer protection laws and uphold ethical standards.

Looking Ahead

As the demand for coaching continues to surge, particularly for competitive exams, the role of regulatory bodies like the CCPA becomes ever more critical. Through continued monitoring and stricter enforcement, the CCPA seeks to eliminate deceptive marketing, improve the quality of services, and strengthen consumer trust in the education sector.

For students and families, this represents a significant step toward fair treatment, transparency, and the protection of educational rights in an industry that profoundly shapes academic and career outcomes.