CCPA issues notices to coaching centres for misleading claims under unfair trade practices

New Delhi [India], April 17 : The Central Consumer Protection Authority (CCPA) has advised coaching centres to strictly adhere to the necessary guidelines and refrain from putting misleading advertisements.

The Authority clearly outlines that it is essential that 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," the Ministry of Consumer Affairs said in a statement Thursday.

Considering the violation of the Act and the Guidelines, CCPA recently issued Notices to a few coaching institutes regarding the 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, and non/partial refund of fees.

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.

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 Rs 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.

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