The Central Consumer Protection Authority (CCPA) has advised coaching centres to strictly adhere to the Consumer Protection Act, 2019 and Guidelines for the Prevention of Misleading Advertisements in the Coaching Sector, 2024.
The Authority clearly outlines that it 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.
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.
Considering the violation of the Act and the Guidelines, CCPA recently has issued Notices to few coaching institutes pertaining to following issues: –
- Guaranteed placement/selection
- Assurance of rank in JEE/NEET
- Violation of consumer rights
- Misleading advertisement and
- Unfair trade practices including promised services not provided, admission cancelled but fee not refunded, deficiency in service, non/partial refund of fees.
Above mentioned 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, 2024, were issued on 13th November 2024. These guidelines 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 a significant move to protect consumer rights and ensure transparency in the coaching sector, the CCPA has, over the past three years, taken action against misleading advertisements, unfair trade practices, and violations of consumer rights by coaching centres.
In this regard, the CCPA has issued 49 notices and imposed a total penalty of ₹77.60 lakhs on 24 coaching centres and directed them to discontinue misleading advertisements and unfair trade practices.
CCPA had earlier taken action against coaching centres offering services for competitive exams including UPSC CSE, IIT-JEE, NEET, RBI, NABARD, among others, reaffirming its commitment to ensuring that no false or misleading advertisements are made in contravention of the Consumer Protection Act, 2019.
