Three IAS coaching institutes were fined by Central Consumer Protection Authority (CCPA), headed by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra. These institutes are Vaji Rao & Reddy and Study IQ IAS and EDGE IAS. These institutes were fined for misleading advertisement in newspapers.
The fines imposed
Vaji Rao & Reddy 7 Lakh
Study IQ IAS 7 Lakh
Edge IAS 1 Lakh.
These institutes were fined for their CSE Result of 2022 and 2023. The CCPA said action has been taken to protect and promote of consumer rights and it is to ensure that no such false or misleading advertisement are made in the future.
Vajirao & Reddy Institute in its advertisement made the following claims-
- “617 selections out of 933 in UPSC CSE 2022”
- “7 in Top 10 AIR”
- “16 in Top 20 AIR”
- “39 in Top 50 AIR”
- “72 in TOP 100 AIR”
- “We are ranked at 1st position among the list of top UPSC Coaching Institutes in India”
CCPA found out that Vajirao & Reddy Institute prominently displayed successful candidate’s names & pictures and simultaneously advertised various types of paid courses on its official website. However, the information with respect to the course opted by the said successful candidates in UPSC Civil Service exam 2022 was not disclosed in the abovementioned advertisement.
The CCPA found out that all the claimed 617 successful candidates were enrolled in the Interview Guidance Programme. It is the right of the consumer to be informed about the specific course that successful candidates had taken from the coaching institute to make it into the final selection of CSE. For the potential consumers, this information would have contributed in their making an informed choice about the course to be opted for their success at CSE.
By deliberately concealing about the specific course opted by each of the successful candidates, the Vajirao & Reddy Institute made it look like all the courses offered by it had the same success rate for the consumers, which was not right. These facts are important for the potential students to decide on the courses that may be suitable for them and should not have been concealed in the advertisement.
StudyIQ IAS in its advertisement made the following claims-
- “120+ selections in UPSC CSE 2023”
- “Success Pakka Offer” & “Selection Pakka Offer”
The institute offers nearly 60+ courses. However, CCPA after examining the institute reply and investigation report found out that out of these 134, 126 students opted for Interview Guidance Programme (IGP), 3 were enrolled in Ethics & Essay Crash course, 2 were enrolled in MRP (Mains Residential Programme course), 2 were enrolled in MOCK, 1 was enrolled in Foundation, Online MRP, DAF Analysis. Study IQ IAS by deliberately concealing the specific name of the course opted by the successful candidates created a misleading impression on consumers into making an uninformed choice about the quality of its service regarding the advertised courses, in which IGP has not been advertised at all.
StudyIQ IAS failed to substantiate its claim “Success Pakka Offer” and “Selection Pakka Offer” and also failed to submit Application/Enrollment/Registration forms & fee receipts of the claimed successful candidates of UPSC CSE 2023.
.The Edge Institute was imposed Rs. Lakh penalty by CCPA for advertising misleading claims regarding results of UPSC CSE 2023. Edge IAS in its published advertisement prominently carried pictures and names of 13 successful candidates of UPSC Civil Service Exam 2023 while concealing important information such as the course opted by them. CCPA found out that 11 were enrolled in the Interview Guidance Program (IGP) and 2 were enrolled in the Mentoring Course and IGP which comes into play only after clearing Preliminary and Mains examination.
Three IAS coaching instutes fined
Laws against misleading advertisement
Section 2(28) (iv) of the Consumer Protection Act, 2019, defines misleading advertisements, including those that involve the “deliberately conceals important information”. CCPA has observed that several coaching institutes use the same successful candidate’s names and photographs in their advertisements while deliberately concealing important information about specific courses opted by them to create a deception that the successful candidates were regular classroom students at coaching institute or were students of several courses offered in the advertisement. Therefore, information regarding the specific course opted by successful candidates is vital for the knowledge of consumers in order to enable them to make an informed choice while deciding the course and coaching institute/platform to enroll in.
45 notices were also served, and so far CCPA had imposed the penalty of 71 lakhs 60 thousands on 22 coaching institutes and directed them to discontinue the misleading advertisements.
