45 coaching centres get notice for ‘misleading’ claims; students beware
Using false claims/guarantees and exaggerated success rates like 100% selection and admission and using photos of successful candidates to influence students preparing for competitive/entrance exams has been a common practice.
The government on Tuesday told Parliament that the Central Consumer Protection Authority (CCPA) has issued 45 notices to various coaching centres and imposed a penalty of Rs 61.6 lakh on 19 coaching institutes, directing them to discontinue “misleading advertisements and unfair trade practices”.
In November, the CCPA had drafted ‘Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024’ following numerous complaints on the National Consumer Helpline (NCH) regarding unfair practices by various coaching centres, especially not refunding the enrolment fees of students/aspirants.
“The NCH initiated a drive to resolve these grievances on a mission mode to facilitate a total refund of Rs 1.15 crore to affected students,” Minister of State for Consumer Affairs, Food and Public Distribution BL Verma said in a written reply.
New rules apply to everyone engaged with coaching
Drafted in the wake of growing concerns about misleading claims, exaggerated success rates, false guarantees and unfair contracts that coaching institutes often impose on students, the comprehensive guidelines also provide a clear definition of words ‘coaching’, ‘coaching centre’ and ‘endorser’.
For example, ‘coaching’ is academic support, imparting education, guidance, instructions, study programme or tuition or any other activity of similar nature but excludes counselling, sports, dance, theatre and other creative activities.
A ‘coaching centre’ is a centre established, run or administered by any person(s) for providing coaching to more than 50 students.
‘Endorser’ is defined under clause 2(f) of the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
Those who lend their name or reputation to coaching centres are also responsible for ensuring that claims they endorse are accurate and truthful.
In other words, if they support false success rates or misleading guarantees, they, too, are accountable along with the coaching centres.
Officials say the guidelines mark an important step in preventing the exploitation of students and ensuring that they are not misled by false promises or compelled into unfair contracts.
They apply to every person engaged in coaching, meaning not just the coaching centers but also endorsers or public figures promoting their services through advertisements.
The aim is to prohibit coaching institutes from making false claims related to courses offered, their duration, faculty qualifications, fees, refund policies, selection rates, success stories, exam rankings, job security promises, assured admissions, high exam scores, guaranteed selections or promotions, they add.
Using photos without consent
Significantly, coaching institutes cannot use a successful candidate’s photograph, name or testimonial without a post-selection consent. This is to eliminate pressure that many students face while enrolling, pushed into signing agreements.
Prospective students, too, should be careful and verify what courses successful candidates were actually enrolled in.
For example, many UPSC candidates clear prelims and mains and use coaching centres only for interview guidance.
As per the guidelines, institutes should disclose information like name, rank and course details alongside the photo and also if the course was paid for by the student.
Disclaimers should be prominently displayed, in the same font size as other important details.
Misleading representations about the quality or standard of services are also prohibited and institutes must accurately represent facts regarding infrastructure, resources and facilities.
A common tactic also is to create a false sense of urgency or scarcity by implying limited seats or exaggerated demand to pressure students into making immediate decisions, all of which is now prohibited under rules.
A caching centre is also required to partner with the National Consumer Helpline for students to raise concerns or complaints regarding misleading advertisements and unfair trade practices.
Enforcement and penalties
Any violation will be treated as a contravention of the Consumer Protection Act, 2019.
The CCPA has the power to take stringent actions against offenders, including imposing penalties, ensuring accountability, and preventing further occurrences of such deceptive practices, say officials.
