‘Misleading’ ads for IAS coaching institutes being probed by consumer protection body | Explained Premium

The Central Consumer Protection Authority is probing 20 IAS coaching institutes for making misleading claims in their advertisements and engaging in unfair trade practices. We examine these claims and the probe in depth.

The story so far: On October 23, the Central Consumer Protection Authority (CCPA) said that it was probing 20 IAS coaching institutes for making misleading claims in their advertisements and for unfair trade practices. Four of the twenty institutions have already been slapped with a penalty of Rs 1 lakh.

The institutes being probed are accused of making misleading or incomplete disclosure about the testimonials in their advertisements. CCPA observed that institutes use pictures and names of top rank holders and successful candidates to influence potential aspirants, without disclosing the nature of their enrolments.  

Elaborating on the broader mechanism at play, Chief Commissioner at CCPA Nidhi Khare told DD News that every time the results of any competitive exam, including the UPSC Civil Services, are announced, coaching institutes would go an advertising spree. Names and pictures of the top rankers are used in these ads to indicate their enrolment at the institute. However, they do not disclose the nature of the enrolment, that is, the course they might have pursued in the institute.

UPSC CSE exams are conducted at three stages, namely, prelims, mains and interview. CCPA has observed that most rank holders showcased in the advertisements only took mock interviews from these institutes. In fact, coaching institutes have been found to provide mock interviews free of cost, since it serves their own interests. This information is not disclosed in the advertisements, which ideally must include the course they enrolled for (which could be a test series, learning course or a revision course). Thus, it would qualify as deliberate concealment of important information and categorisation as a ‘misleading advertisement’ under Section 2(28) of the Consumer Protection Act, 2019.  

First time violations may invite penalties up to Rs 10 lakh. Subsequent violations may attract penalties up to Rs 50 lakh, with other potential legal action should the non-compliance continue.  

UPSC recommended a total of 933 candidates post its CSE examinations in 2022. However, as observed by CCPA, the total selections claimed by the institutes being probed exceeded the recommendations significantly— the cumulative count was over 3,500. This could also be because of multiple enrolments among students.  

At present, four institutes have been fined — Chahal Academy, IQRA IAS, Rau’s IAS Study Circle and IAS Baba. While IAS Baba has received a stay on the probe from the Karnataka High Court, Rau’s IAS has appealed against the order in the National Consumer Disputes Redressal Commission (NCRDC). Other coaching institutes currently being probed include Vajirao and Reddy Institute, KSG- Khan Study Group IAS, Drishti IAS, Sriram IAS, NEXT IAS and Vision IAS, among others.