New Delhi : The Central Consumer Protection Authority (CCPA) has fined Motion Education Pvt. Ltd. and Career Line Coaching (CLC) for allegedly publishing misleading advertisements and engaging in unfair trade practices under the Consumer Protection Act, 2019.
The consumer watchdog imposed a penalty of ₹10 lakh on Motion Education Pvt. Ltd. and ₹5 lakh on Career Line Coaching (CLC), Sikar, after finding that the institutes used the names, photographs, and achievements of successful IIT-JEE and NEET candidates in advertisements while concealing crucial details about the actual courses pursued by those students.
The orders were passed by the CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra.
According to the authority, Motion Education published claims such as "51.02% qualified students in JEE Advanced", "91.2% qualified students in NEET", and highlighted top-ranking students in promotional campaigns across its website, YouTube channel, Instagram account, and newspaper advertisements.
However, the investigation by the Director General (Investigation) found that many students featured in the advertisements were enrolled in the institute's "I-Eklavya" programme - a special rankers' batch offered free of cost to selected students through tests and interviews. The advertisements allegedly failed to disclose this key information.
The probe also revealed that some students whose achievements were showcased had joined the institute only after the examinations were conducted, leading to allegations that their success was falsely attributed to the institute for promotional purposes. Authorities further noted that photographs and names of certain students were used without proper consent from students or guardians.
In the case of Career Line Coaching (CLC), Sikar, the institute advertised claims including "1650+ CLCians in MBBS, IIT & Others", "2 CLCians in NEET AIR-100", and "3 CLCians at AIIMS Delhi".
The CCPA observed that the institute failed to provide documentary evidence supporting these claims despite repeated opportunities. Investigators also found that several students featured in the advertisements had enrolled only for test series programmes, a fact allegedly concealed in promotional material.
The authority additionally pointed out contradictions in CLC's submissions regarding the "1650+ CLCians" claim. While the institute initially stated the figure represented cumulative selections since 1996, it later claimed during hearings that the number pertained only to the year 2024, making the claim misleading and unsubstantiated.
The CCPA held that both institutes violated the Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024, by failing to disclose the nature of courses attended by successful candidates and by not furnishing proof of written consent from students after declaration of results.
The authority directed both coaching institutes to immediately discontinue misleading advertisements, refrain from publishing such advertisements in the future, and ensure truthful and transparent disclosures in all promotional campaigns. Both institutes have challenged the CCPA orders before the National Consumer Disputes Redressal Commission (NCDRC).
The CCPA said misleading advertisements in the education sector severely impact students and parents who invest significant time and money in competitive exam preparation. It noted that concealing whether successful candidates attended full-time classroom programmes, online batches, crash courses, or merely test series amounts to misleading advertising under the Consumer Protection Act, 2019.
According to the authority, more than 60 notices have so far been issued to coaching institutes over misleading advertisements and unfair trade practices, with penalties exceeding ₹1.39 crore imposed on 31 institutes preparing students for examinations, including UPSC, IIT-JEE, NEET, and RBI recruitment tests.