Rs 15 lakh fine on coaching institutes for misleading advertisements

The Central Consumer Protection Authority (CCPA) has imposed a fine of Rs 15 lakh on three leading coaching institutes for making misleading advertisements regarding the success rate of Civil Services Examination (CSE). These institutes are Vajirao & Reddy Institute, StudyIQ IAS, and Edge IAS.

• Vajirao & Reddy and StudyIQ IAS were fined Rs 7 lakh each.
• The former IAS had to face a penalty of Rs 1 lakh.

CCPA’s strict stance on misleading claims

According to CCPA, these institutes made misleading claims about the results of UPSC 2022 and 2023.

• Vajirao & Reddy had claimed 617 selections out of 933 in the 2022 exam.
• StudyIQ IAS Advertised 120+ Selection in 2023.
  However, investigation revealed that most of the successful candidates had registered only for the Interview Guidance Programme.

How were the misleading claims made?

The CCPA found that these institutions withheld important information to mislead students:

1. Focus on Interview Guidance Programme:
   • Most of the successful candidates had attended only the interview guidance program and not the main coaching courses.
2. False promotion of course effectiveness:
   • The advertisements gave the false impression that all their courses were equally effective.

Action under Consumer Protection Act

Hiding important information and giving misleading advertisements is a punishable offense under the Consumer Protection Act, 2019.

• Till now CCPA has issued 45 notices regarding misleading advertisements.
• A total fine of ₹71.6 lakh has been collected from 22 institutions.

Strategy and reality of institutions

The CCPA also found that:

• Vajirao & Reddy deliberately concealed information about successful students taking admission only in the Interview Guidance Course.
• The aim was to show that all their courses offer similar success rates.
• This created a misconception among students and parents about the effectiveness of their other courses.

Vigilance is necessary for students

Students preparing for civil services have been advised to be cautious of these misleading advertisements. Believing the claims of institutions without checking the facts can be harmful for their career.