CCPA imposes Rs 3 Lakh penalty on education institute for misleading advertisement

The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 3 lakh on Sriram’s IAS for misleading advertising. The penalty was issued for allegedly false and deceptive advertisements that violate the Consumer Protection Act, 2019.

Due to this violation, the CCPA, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, issued an order against Sriram’s IAS regarding misleading advertisements related to the UPSC Civil Service Exam 2022. The order pointed out that coaching institutes and online edtech platforms often use the images and names of the same successful candidates to influence potential aspirants (consumers), without disclosing the courses chosen by those candidates or the duration of their attendance.

Sriram’s IAS made the following claims in its advertisement: “200 plus selections in UPSC Civil Service Exam 2022” and “We are India’s No.1 Prestigious UPSC/IAS Coaching Institute.” However, the CCPA found that Sriram’s IAS concealed information about which courses the successful candidates had enrolled in. This omission misled consumers into believing that all the successful candidates had taken the paid courses advertised by the institute.

In its response, Sriram’s IAS provided details for only 171 successful candidates, contrary to its claim of over 200 selections in the UPSC CSE 2022. Among these 171 candidates, 102 were from the Free Interview Guidance Program (IGP), 55 were from the Free Test Series, 9 were from the GS Classroom course, and 5 candidates were from different states under an MoU between the state government and the institute to provide free coaching. This information was not disclosed in the advertisement, thereby deceiving consumers.

It is well-known that successful candidates in the Civil Services Examination must pass all three stages: Prelims, Main Exams, and the Personality Test (PT). While the Prelims is a screening test, the marks obtained in the Main Exams and Personality Test determine the final selection. The total marks for the Main Exams and PT are 1750 and 275, respectively, with the Personality Test contributing 13.5% to the total score.

The majority of the candidates had already cleared the Preliminary and Main exams without any contribution from Sriram’s IAS. By concealing this fact, the misleading advertisement has a significant impact on UPSC aspirants, who may not realize that Sriram’s IAS only provided guidance to candidates who had already cleared the Preliminary and Main exams. This advertisement violated the consumer’s right to be informed and protected against unfair trade practices.

Nidhi Khare, Chief Commissioner of CCPA, emphasized that advertisements must contain truthful and honest representations of facts, with important information disclosed in a clear, prominent, and easily noticeable manner for consumers. She highlighted the importance of consumer rights and the obligation of advertisers to provide accurate information to consumers.