CCPA Sends Notices to Coaching Institutes for Deceptive Advertising
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Synopsis
On April 17, the Central Consumer Protection Authority (CCPA) took action against coaching institutes for misleading advertising practices, urging compliance with the Consumer Protection Act and relevant guidelines to protect students from deceptive claims.
Key Takeaways
- CCPA has issued notices to coaching centres for misleading ads.
- Violation of Consumer Protection Act and Guidelines identified.
- Unfair trade practices include non-fulfillment of services.
- Coaching centres must provide accurate representations.
- Guidelines aim to enhance fairness and transparency.
New Delhi, April 17 (NationPress) The Central Consumer Protection Authority (CCPA) has dispatched notices to several coaching institutes for breaching the Consumer Protection Act and the Guidelines for the Prevention of Misleading Advertisements in the coaching sector, as per an official announcement made on Thursday.
Following the recent announcement of results for competitive examinations such as IIT-JEE and NEET, the CCPA noticed that coaching centres are failing to comply with the Guidelines for the Prevention of Misleading Advertisements in the coaching sector, 2024.
Unfair trade practices have also been identified, including delivering promised services that were not provided, cancellations of admissions without fee refunds, and inadequate service with non/partial refunds of fees.
The CCPA has urged all coaching institutes to rigorously follow the Consumer Protection Act, 2019 and the Guidelines for the Prevention of Misleading Advertisements in the coaching sector.
It is crucial for their representations to be accurate, transparent, and devoid of misleading assertions or the omission of critical consumer information.
Moreover, coaching centres should refrain from making claims of guaranteed success. They must clearly present essential details in their advertisements, including the student’s name, rank, course type, and whether the course fees were paid. Disclaimers should be prominently displayed in the same font size as other significant information to prevent consumer deception.
The claims and practices mentioned appear to contravene various sections of the Act, including Section- 2(28) and Section- 2(47) of the Consumer Protection Act, 2019, and the Guidelines for Prevention of Misleading Advertisements in the coaching sector, 2024.
The Guidelines for the Prevention of Misleading Advertisements in the coaching sector, issued on November 13, 2024, forbid coaching centres from disseminating false or misleading claims/advertisements to market their services and from engaging in deceptive or unfair practices.
These guidelines signify a critical measure toward safeguarding students against exploitation, ensuring they are not misled by untrue promises or coerced into unfair agreements.
The guidelines are structured to promote transparency and fairness within the sector, aiding students and their families in making informed choices based on accurate and truthful information. They complement existing regulations and fortify the regulatory framework overseeing advertisements in the coaching domain.
In this context, the CCPA has issued 49 notices and levied a total penalty of Rs 77.60 lakh on 24 coaching centres, instructing them to halt misleading advertisements and unfair trade practices over the past three years.
The CCPA has previously taken action against coaching centres providing services for competitive exams, including UPSC CSE, IIT-JEE, NEET, RBI, and NABARD, among others.
