Misleading ads by coaching centres under lens; CCPA imposes Rs 64 lakh penalty

Today, the Department of Consumer Affairs has issued new guidelines to control misleading advertisements by coaching institutes. The CCPA’s (Central Consumer Protection Authority) new guidelines aim to address misleading practices by coaching institutes. The guidelines focus on transparency and truthfulness in advertising and require coaching centres to present accurate information to students and parents. 

In 2023, the Union Public Service Commission (UPSC) conducted exams for 1,016 posts. However, many coaching institutes falsely claimed nearly 3,000 successful candidates from their programs. To prevent such misleading claims, the CCPA has introduced strict measures.

Key measures include
Clear disclosure of course details: Coaching centres must provide transparent information on course duration, terms, and conditions for course withdrawal, and any free interview guidance programs offered.

Honest Advertising: Ads containing claims of success must be backed by genuine evidence. False urgencies like limited seat promotions are now classified as unfair trade practices.

Use of success stories and photos: If a centre uses photos or data of successful candidates, written consent from those candidates is mandatory.

Proper display of disclaimers: Disclaimers must be visible, with essential information presented on the first slide of any promotional content.

Complete information on facilities: Centres must disclose the capacity, environment, and safety features of their premises, as well as emergency exit plans. They must also confirm that all necessary permits from local authorities are in place.

Addressing safety concerns
Following incidents of students losing their lives due to inadequate safety measures, such as drowning or electrocution at coaching facilities, the CCPA is enforcing strict safety protocols. Centres must provide detailed safety information and comply with local regulations to ensure a safe learning environment.

Penalties for violations
To enforce these guidelines, the CCPA has imposed penalties. 
Fines up to Rs 1 lakh for initial violations.
Fines up to Rs 50 lakh for repeated or severe violations.
License cancellation for consistent non-compliance.

Consumer complaint handling
Institutes are now required to have an effective system for handling and resolving student and parent complaints.