The Central Consumer Protection Authority (CCPA) has taken decisive action against two coaching institutes for engaging in misleading advertisements and unfair trade practices. On Friday, the CCPA imposed a fine of Rs 10 lakh on Motion Education Pvt. Ltd. and Rs 5 lakh on Career Line Coaching (CLC), Sikar, under the Consumer Protection Act, 2019. This move aims to safeguard consumer rights and ensure that coaching institutes do not make false or deceptive claims in their promotional materials.
Details of the Violations
The CCPA found that both institutes prominently displayed the names, photographs, and success stories of students who had achieved top ranks in competitive exams like IIT-JEE and NEET. However, they failed to disclose crucial information about the specific courses these students had actually enrolled in. In some cases, students whose images were used had enrolled after the examinations, creating a misleading impression that their success was directly linked to the institute's programs. The authority also noted that the institutes could not provide proper documentary evidence for several of their claims, even after repeated requests.
Lack of Consent and Transparency
Further investigation revealed that both institutes did not obtain written consent from students or their parents for using their names and photographs in advertisements, as mandated by the Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024. The CCPA has directed them to cease all misleading advertisements and ensure full and honest disclosure in future promotions. Despite these orders, both coaching centres have challenged the penalties before the National Consumer Disputes Redressal Commission (NCDRC).
Broader Crackdown on Coaching Sector
This action is part of a larger effort by the CCPA to protect students' interests and enhance transparency in the coaching industry. To date, the authority has issued over 60 notices to coaching institutes for misleading advertisements and unfair trade practices. After detailed examinations and investigations, penalties totaling more than Rs 1.39 crore have been imposed on 31 coaching institutes that offer preparation for exams such as UPSC Civil Services Examination (CSE), IIT-JEE, NEET, RBI, and other competitive tests.
