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HomeUncategorizedCCPA imposes Rs 61.6 lakh penalty on coaching centres for misleading ads

CCPA imposes Rs 61.6 lakh penalty on coaching centres for misleading ads

The Central Consumer Protection Authority (CCPA) has issued notices to 45 coaching centres for misleading advertisements and imposed a penalty of Rs 61.6 lakh on 19 institutes, as part of its ongoing efforts to protect consumer interests. The move follows a crackdown on unfair trade practices in the coaching sector, which has been a growing concern for students and aspirants across the country. 

The CCPA’s action stems from the ‘Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024,’ issued on November 13. These guidelines aim to curb deceptive claims made by coaching centres, particularly those promoting false or misleading representations about their success rates and course offerings. The guidelines explicitly prohibit the creation of false urgency, unsubstantiated claims regarding course quality, and the use of misleading testimonials, including fabricated success stories. 

The Union Minister of State for the Ministry of Consumer Affairs, B.L. Verma, addressed the issue in a written reply in the Rajya Sabha and said, “Following numerous complaints registered in the National Consumer Helpline regarding unfair practices by various coaching centers especially not refunding the enrolment fees of the students/ aspirants, NCH initiated a drive to resolve these grievances on a mission-mode to facilitate a total refund of ₹ 1.15 cr. to affected students.

The CCPA’s intervention reflects a broader commitment to ensuring transparency and fairness in the education sector. The authority has taken steps to safeguard students against fraudulent practices that undermine their trust in coaching centres. The penalties serve as a reminder that coaching institutes must comply with ethical advertising standards and ensure that all claims made in their advertisements are backed by verifiable evidence. 

This latest action follows a previous fine of Rs 1 lakh imposed on IQRA IAS Institute in 2023 for similar misleading claims. 

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