Hyderabad/New Delhi: The Central Consumer Protection Authority has taken decisive action against misleading advertisements and unfair trade practices in the coaching sector, imposing penalties exceeding Rs 1.39 crore on 31 institutes across India.
The crackdown follows investigations into deceptive claims made by coaching centres preparing students for competitive examinations such as IIT-JEE, NEET, UPSC CSE, and RBI exams.
In its latest orders, the CCPA penalised Motion Education with a fine of Rs 10 lakh and Career Line Coaching, Sikar, with a fine of Rs 5 lakh. Both institutes were found guilty of publishing misleading advertisements, concealing critical information about the actual courses undertaken by successful candidates, and violating consumer rights under the Consumer Protection Act 2019.
The CCPA heard the Motion Education case which claimed high success rates in JEE and NEET results, prominently featuring the names and photographs of top-ranking students. However, investigations revealed that most of these students were enrolled in the I-Eklavya online course, a free programme offered to selected candidates, rather than the paid classroom batches advertised.
The institute also used photographs of students who joined after exams were conducted, falsely attributing their success to its coaching. Moreover, consent from students and parents was not obtained before using their images in promotional material. Similarly, CLC advertised claims such as 1650 plus CLCians in MBBS and IIT. Investigations found that several students featured were enrolled only in test-series courses, not full-time programmes. The institute also provided contradictory explanations of its selection figures and failed to substantiate claims with documentary evidence.
The CCPA, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, directed both institutes to discontinue misleading advertisements immediately and ensure truthful disclosures in future promotions. The Authority emphasised that concealment of course details and the use of student achievements without consent constitute unfair trade practices. As part of a nationwide crackdown, the CCPA has issued over 60 notices, underscoring its commitment to safeguarding student interests.
The Authority reiterated that misleading advertisements undermine the right to be informed, particularly in education where aspirants invest significant time and financial resources. While the penalised institutes have challenged the orders before the National Consumer Disputes Redressal Commission, the CCPA maintains that transparency and accountability are essential to protect consumers from deceptive marketing tactics within the competitive exam industry.