CCPA fines 24 coaching institutes ₹77.6 lakhs for misleading ads

The Central Consumer Protection Authority (CCPA) has taken decisive action against misleading advertisements in the coaching sector, imposing a total penalty of ₹77.6 lakhs on 24 coaching institutes across India. This move underscores the government's commitment to safeguarding consumers from unfair practices and false claims, particularly in the education sector.

The penalties come as a result of the CCPA's enforcement of the "Guidelines for Prevention of Misleading Advertisements in the Coaching Sector, 2024," which were introduced to curb deceptive marketing practices, exaggerated success rates, and unfair claims made by coaching centers.

The Department of Consumer Affairs (DoCA) has also successfully facilitated refunds amounting to ₹1.56 crores for over 600 students through the National Consumer Helpline (NCH). These students, enrolled in coaching programs for Civil Services, Engineering, and other courses, were initially denied refunds despite adhering to the institutes' terms and conditions.

"These actions send a strong message to coaching institutes that misleading advertisements and unfair refund policies will not be tolerated," stated Union Minister of State for Consumer Affairs, Food and Public Distribution, Shri B.L. Verma, in a written reply in the Rajya Sabha. "Our priority is to protect students and ensure they are not financially burdened by unscrupulous practices."

The CCPA's crackdown highlights the growing concern over misleading advertisements in the coaching industry, which often prey on the aspirations of students and their families. The guidelines aim to ensure transparency and accountability, requiring coaching institutes to provide accurate information and avoid making false promises.

The NCH, administered by the DoCA, has played a crucial role in resolving consumer grievances, including those related to the education sector. The platform offers a multi-lingual grievance redressal system, accessible through various channels like phone, WhatsApp, SMS, email, app, and website, making it easier for consumers to seek redressal.

The CCPA's actions, including the imposition of penalties and the facilitation of refunds, demonstrate a proactive approach to consumer protection in the education sector. This move is expected to bring greater transparency and accountability to the coaching industry, ensuring students receive fair and honest information.