The Central Consumer Protection Authority (CCPA), led by Chief Commissioner Ms Nidhi Khare (1992 batch IAS officer of Jharkhand cadre) and Commissioner Mr Anupam Mishra (1995 batch IES officer), has taken strict action against coaching institutes making misleading claims about the results of the UPSC Civil Services Exam (CSE) 2022 and 2023. Penalties totaling ₹9 lakh have been imposed on Vajirao & Reddy Institute, StudyIQ IAS, and Edge IAS for violating the Consumer Protection Act, 2019.
Penalties and Violations
Vajirao & Reddy Institute faces a penalty of ₹7 lakh for advertising false claims regarding its success rate in UPSC CSE 2022. The advertisement stated: “617 selections out of 933 in UPSC CSE 2022,” alongside other exaggerated claims of top AIR rankings. CCPA found that all the 617 successful candidates had enrolled in the Interview Guidance Programme (IGP), a crucial detail omitted from the advertisement. The institute’s failure to specify the course chosen by the successful candidates misled prospective students about the actual success rates of the institute’s courses.
Similarly, StudyIQ IAS was fined ₹7 lakh for making misleading claims such as “120+ selections in UPSC CSE 2023” and “Success Pakka Offer.” The institute failed to disclose that most of its successful candidates had enrolled in the Interview Guidance Programme, not the advertised regular courses. Additionally, StudyIQ IAS did not substantiate its “Success Pakka Offer” claim with proper documentation or course enrollment details.
Edge IAS, which faced a ₹1 lakh penalty, was found guilty of similarly misleading consumers with claims about UPSC CSE 2023 results. The institute showcased the names and photographs of successful candidates but concealed the specific courses they had enrolled in, misrepresenting the effectiveness of its offerings.
CCPA’s Rationale
The CCPA’s actions come in response to complaints that these coaching institutes used successful candidates’ names and images to advertise their services, while deliberately hiding the courses the candidates took to achieve success. According to Section 2(28) (iv) of the Consumer Protection Act, 2019, misleading advertisements include those that “deliberately conceal important information.” By withholding this crucial information, the institutes misled students into making uninformed choices about which courses to enroll in.
Ongoing Efforts to Protect Consumers
The CCPA has previously issued 45 notices to coaching institutes for similar offenses and imposed a total penalty of ₹71.6 lakh on 22 coaching institutes for misleading advertising. The Authority continues to monitor and take action against unfair trade practices to protect the interests of consumers, particularly young aspirants seeking guidance for competitive exams like UPSC.
These measures highlight the CCPA’s commitment to safeguarding consumer rights and ensuring transparency in advertising practices within the education sector.
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