Consumer Protection Authority Cracks Down on Misleading Ads by 31 Coaching Institutes; 9 slapped Fine

CCPA found instances where coaching institutes claimed 100% selection rates or guaranteed jobs without providing verifiable evidence

The Central Consumer Protection Authority (CCPA) has taken robust action against 31 coaching institutes for disseminating misleading advertisements. Nine of these institutes have been slapped with fines for their deceptive marketing practices. This crackdown comes as the CCPA observed a pattern of deliberate concealment of crucial information by these institutes, leading to consumer misinformation.

The CCPA highlighted that these coaching institutes have been found guilty of misleading prospective students by withholding vital details concerning the course choices made by successful candidates, the duration of these courses, and the fees incurred. Furthermore, the authority noted that some institutes were making audacious claims of 100% selection rates and guaranteed job placements without providing substantiated evidence.

In response to this alarming trend, the CCPA organized its inaugural committee meeting to draft stringent guidelines aimed at curbing misleading advertisements prevalent in the coaching sector. Chaired by Rohit Kumar Singh, Secretary of Consumer Affairs and Chief Commissioner of CCPA, the committee convened to deliberate on the draft guidelines.

The proposed guidelines are designed to encompass all coaching institutes, irrespective of their online or physical presence, and cover a wide spectrum of advertising methods. Their primary objective is to put a stop to false assertions regarding success rates, selection numbers, and other deceptive practices that could potentially mislead consumers.

According to these guidelines, coaching institutes must transparently disclose specific information alongside photographs of successful candidates. This includes details such as the candidate's ranking, chosen course, course duration, and whether it is a paid or free course. Additionally, the guidelines explicitly forbid claims of 100% selection or job guarantees, emphasizing the necessity for clear and prominent placement of disclaimers and essential information in all advertisements.

It is essential to note that violations of these guidelines will be addressed in accordance with the Consumer Protection Act of 2019, with penalties being governed by existing provisions. The committee has stressed the urgent need to promptly issue these guidelines to rectify the situation.

The CCPA's decisive actions underscore their commitment to safeguarding consumer rights by ensuring transparency and accuracy in advertisements by coaching institutes. This initiative aims to prevent consumer deception caused by misleading claims, thereby empowering consumers to make well-informed decisions about their educational pursuits.