Coaching institute fined ₹2 lakh for deceptive UPSC success ads

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹2 lakh on Shubhra Ranjan IAS Study for misleading advertisements related to the results of the UPSC Civil Services Examination (CSE) 2023. The institute’s claims of '13 students in Top 100,' '28 students in Top 200,' and '39 students in Top 300' were found to lack transparency regarding the courses taken by the successful candidates.

The CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, ordered the institute to discontinue the advertisements immediately, citing violations of the Consumer Protection Act, 2019. The authority stated, “It is the right of the consumer to be informed about the specific course that successful candidates had taken from the coaching institute to make it into the final selection of CSE.”

The investigation revealed that most successful candidates had enrolled in the Political Science and International Relations (PSIR) crash course and test series, which is relevant only after clearing the preliminary examination. By omitting these details, the institute created the misleading impression that all its courses had similar success rates.

The advertisements prominently featured the names and photographs of successful candidates alongside promotional content for various courses. However, the CCPA noted the institute failed to disclose which specific courses these candidates attended, their fees, or the duration of their enrolment.

Additionally, the institute used terms such as 'Shubhra Ranjan IAS' and 'Students of Shubhra Ranjan IAS' in its advertisements and letterheads, creating a false impression that Mrs Shubhra Ranjan is or was an IAS officer. While the institute claimed this was a clerical error, the CCPA deemed this explanation unacceptable, noting the terminology’s frequent use in its promotional materials.

This action is part of a broader crackdown on misleading advertisements by coaching institutes. In November 2024, the CCPA imposed a ₹7 lakh penalty on Vajirao & Reddy Institute for false claims regarding UPSC CSE 2022 results, including an assertion that '617 selections out of 933' were achieved through its courses.

To date, the CCPA has issued 45 notices to various coaching institutes, imposing penalties totalling ₹63.6 lakh on 20 of them. The Department of Consumer Affairs, through the National Consumer Helpline (NCH), has also facilitated the refund of ₹1.15 crore to 432 students for grievances such as non-refund of enrolment fees.

The CCPA reiterated the need for advertisements to be truthful and include clear, prominent disclosures to prevent consumers from being misled.