CCPA issues notices to 45 coaching centers for misleading ads; imposes penalty of Rs 61,60,000

The Central Consumer Protection Authority (CCPA) has taken strong action against coaching centers involved in misleading advertisements. On November 13, 2024, the CCPA issued the “Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024” to curb deceptive practices in the coaching industry. The guidelines aim to prevent coaching centers from making false or misleading claims to promote their services or products.

As part of its efforts, the CCPA has issued 45 notices to various coaching institutes found guilty of engaging in misleading advertisements. Additionally, 19 coaching centers have been fined a total of Rs 61,60,000 for violating consumer protection norms. These institutes have also been ordered to discontinue the deceptive advertisements and unfair trade practices that harm consumers.

The CCPA was established under Section 10 of the Consumer Protection Act, 2019, to regulate consumer rights violations and unfair trade practices. This move is part of a broader initiative to modernize the consumer protection framework to address the challenges posed by globalization, technological advancements, and the rapid expansion of e-commerce.

Alongside its regulatory efforts, the Department of Consumer Affairs has strengthened the National Consumer Helpline (NCH), which acts as a key resource for consumer grievance redressal. The NCH provides a centralized platform where consumers can file complaints regarding goods, services, and unfair trade practices. The helpline is accessible in 17 languages and operates through various channels, including WhatsApp, SMS, email, and mobile apps, making it easy for consumers to lodge complaints.

In recent months, the NCH has been instrumental in addressing complaints from students and aspirants who enrolled in coaching centers for exams such as the UPSC Civil Services and IIT entrance examinations. A significant number of complaints related to unfair practices, including non-refunding of enrollment fees, prompted NCH to take swift action. The department's intervention resulted in a total refund of Rs 1.15 crore to affected students.

In response to the growing need for consumer protection, the NCH partners with over 1,000 companies under its ‘Convergence’ program. These companies voluntarily collaborate with the NCH to ensure prompt grievance resolution, and they provide feedback directly to consumers through the central portal.

The actions taken by the CCPA and NCH underscore the government’s commitment to strengthening consumer protection mechanisms and promoting fair practices across sectors, particularly in industries like coaching, which are integral to the educational aspirations of millions of students.

This information was shared by B.L. Verma, Union Minister of State for the Ministry of Consumer Affairs, Food and Public Distribution, in a written reply to the Rajya Sabha on December 16, 2024.