The Central Consumer Protection Authority (CCPA) has issued a stern advisory to coaching centres across the country, directing them to comply strictly with the Consumer Protection Act, 2019, and the recently introduced Guidelines for the Prevention of Misleading Advertisements in the Coaching Sector, 2024.
The move is a bid to uphold consumer rights and ensure transparency in the education sector,
The advisory comes in the wake of widespread concerns over misleading advertisements and deceptive practices by coaching institutes, particularly following the announcement of results for major competitive exams like IIT-JEE and NEET. The CCPA observed several violations of the new guidelines and the Consumer Protection Act, prompting regulatory action.
According to the CCPA, coaching centres must ensure that all promotional material is accurate, transparent, and free from exaggerated or deceptive claims. Specifically, institutions have been warned against making guarantees of selection or rank in competitive examinations. Advertisements must clearly state the student’s name, rank, type of course undertaken, and whether it was a paid course. Additionally, disclaimers should be prominently displayed using the same font size as key claims, ensuring that vital information is not obscured.
In recent enforcement action, the CCPA has issued notices to several coaching centres for violations including:
- Promising guaranteed placement or selection
- Assuring ranks in JEE/NEET
- Breach of consumer rights
- Disseminating misleading advertisements
- Engaging in unfair trade practices such as non-refund of fees, cancelled admissions without compensation, and failure to deliver promised services
These practices, the CCPA said, contravene key provisions of the Consumer Protection Act, 2019, including Sections 2(28) and 2(47), as well as the 2024 guidelines intended to regulate advertising in the coaching industry.
The Guidelines for the Prevention of Misleading Advertisements in the Coaching Sector, 2024, notified on November 13, 2024, prohibit coaching centres from making false or exaggerated claims and engaging in practices that exploit students or mislead families. The guidelines are aimed at promoting transparency, fairness, and informed decision-making in the highly competitive and often opaque coaching sector.
Reinforcing its commitment to consumer protection, the CCPA revealed that over the past three years, it has issued 49 notices and levied penalties amounting to Rs 77.60 lakh on 24 coaching institutes. These centres were directed to halt misleading advertisements and cease all unfair trade practices.
The authority has previously taken action against coaching centres preparing students for various competitive examinations, including UPSC CSE, IIT-JEE, NEET, RBI, and NABARD, sending a strong signal to the industry about the consequences of non-compliance.
The CCPA reiterated that it will continue to monitor the sector and take appropriate action to safeguard consumer rights and protect students from being misled by false promises.
