CCPA issues notices to coaching centres for misleading ads

New Delhi: The Central Consumer Protection Authority (CCPA) has issued notices to some coaching institutes for violating the Consumer Protection Act and Guidelines for the Prevention of Misleading Advertisements in the Coaching Sector, according to an official statement issued on Thursday.

Following the recent declaration of results for examinations such as IIT-JEE and NEET, the CCPA observed that coaching centres are not adhering to the Guidelines for the Prevention of Misleading Advertisements in the Coaching Sector, 2024.

It has also detected unfair trade practices including promised services not provided, admission cancelled but fee not refunded, deficiency in service, non/partial refund of fees.

The CCPA has advised all coaching centres to strictly adhere to the Consumer Protection Act, 2019 and Guidelines for the Prevention of Misleading Advertisements in the Coaching Sector.

The authority said this is essential their representations are accurate, clear, and free from misleading claims or the concealment of important information from consumers.

Additionally, coaching centres should avoid making assurances of guaranteed success. Coaching centres must clearly disclose key details in their advertisements, including the student’s name, rank, course type, and whether the course was paid. Disclaimers must be prominently displayed in the same font size as other important information to ensure consumers are not misled.

Abovementioned claims and practices appear to be violating various provisions of the Act including Section- 2(28) and 2 (47) of Consumer Protection Act, 2019 and Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024.

The Guidelines for the Prevention of Misleading Advertisements in the Coaching Sector, issued on 13th November 2024, prohibit coaching centres from making false or misleading claims/advertisements to promote their services and from engaging in deceptive or unfair practices.

These guidelines represent a vital step toward preventing the exploitation of students and ensuring that they are not misled by false promises or compelled into unfair contracts.

The guidelines are framed to enhance transparency and fairness in the sector, helping students and their families make informed decisions based on accurate and truthful information. These guidelines supplement existing regulations and further strengthen the regulatory framework governing advertisements in the coaching sector.

In this regard, the CCPA has issued 49 notices and imposed a total penalty of Rs 77.60 lakh on 24 coaching centres and directed them to discontinue misleading advertisements and unfair trade practices in the past three years.

CCPA had earlier also taken action against coaching centres offering services for competitive exams including UPSC CSE, IIT-JEE, NEET, RBI, NABARD, among others.

IANS