Consumer body issues notices to IAS coaching centres for ‘misleading’ ads

The Section 2(28) of the Consumer Protection Act, 2019 defines “misleading advertisement” in relation to any product or service which— (i) falsely describes such product or service; or (ii) gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service; or (iii) conveys an implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or (iv) deliberately conceals important information.

Citing examples of misleading claims made by one of the coaching institutes, Khare said the institute claimed credit for 682 of 933 selected candidates in the UPSC examination in 2022. However, when the CCPA sent notice to the coaching institute, it clarified that of the 682 candidates, 673 took mock interviews at its institute and 9 aspirants enrolled in courses like test series and general studies, the official said, adding that the coaching institute did not specify that the majority of successful candidates availed only mock interviews and tests.

The senior official said the current market revenue of the coaching industry in the country is Rs 58,088 crore. Approximately, over 2 lakh students move to Kota annually, she said.

As per the CCPA Chief Commissioner, a penalty has been imposed against four of the 20 coaching institutes. Of the four institutes two have deposited penalties, while the other two have approached the court.

“If there is proper disclosure by the coaching institutes, there would be less incidents of deceiving consumers,” Khare said, adding the action against different coaching institutes is at different stages.