CCPA formulates new guidelines to identify misleading coaching ads: Report

The Central Consumer Protection Authority (CCPA) conducted the first meeting of the Committee constituted to prepare Guidelines with respect to misleading advertisements in the coaching sector on 8^th January 2024. The Committee discussed the Draft of the Guidelines.

Rohit Kumar Singh, Secretary (Consumer Affairs) & Chief Commissioner (CCPA) stated that the protection of consumer interest is a paramount concern to CCPA. He highlighted the need for clarity, specifically in addressing certain aspects related to advertisements in the coaching sector. He further stated that CCPA firmly believes in safeguarding the rights of consumers and ensuring no false or misleading advertisement is made of any goods or services which contravenes the provisions of the Consumer Protection Act, 2019.

The Guidelines shall be applicable to all the coaching institutes whether online or physical and cover all forms of advertisement regardless of form, format or medium. The Guidelines prescribe conditions when an advertisement by a coaching institute shall be construed to be misleading advertisement as defined under the Consumer Protection Act 2019 which inter-alia include concealing important information related to the course opted by the successful candidates [courses opted by successful candidates (whether free or paid), duration of course etc.

The Guidelines also provide that coaching institutes shall not make false claims regarding success rates or number of selections or any other practices that may lead to consumer misunderstanding or subvert consumer autonomy and choice. 

The guidelines also prescribes DO’s and DON’T’s that need to be observed before coming up with advertisements:-

1. Coaching Institute shall mention the requisite information with the successful candidate's photo:-

• • Rank secured by the successful candidate
  • Course opted by the successful candidate
  • Duration of course
  • Whether it is paid or free

2. Coaching institutes shall not make a claim 100% selection or 100% job guaranteed or guaranteed preliminary or mains.
3. The font of the disclaimer/Disclosure/Important information in the advertisement shall be the same as that used in the claim/advertisement. The placement of such information shall be at a prominent and visible place in the advertisement.

It was also clarified that the penalty for misleading advertisement by the coaching sector will be governed as per the Consumer Protection Act, 2019 and the Guidelines are just in the nature of clarification to the stakeholders and violations of the provisions of the Consumer Protection Act 2019 shall continue to be governed under the existing provisions of the Consumer Protection Act 2019. 

The Committee observed that there is an urgent need to issue the Guidelines and the Draft as discussed in the Meeting should be issued at the earliest.

CCPA has taken serious action against misleading advertisements by coaching institutes. In this regard, CCPA has issued notices to 31 coaching institutes for misleading advertisements and imposed fines on 9 of them for misleading advertisements.