Underlining the continuing efforts to protect consumer interest, the Central Consumer Protection Authority (CCPA) has sent out show-cause notices to 45 coaching institutes pan-India for blackmailing distributors through misleading advertisements.
Of these, a fine amounting to ₹61.6 lakh was imposed on 19 institutes with the direction to stop their misleading advertisements.
This action sends a strong signal about the government’s commitment to ensuring a transparent and fair system in the education sector.
The inflated success ratios and guarantees given by some coaching centres have raised questions on the credentials of such marketing ploys in making students temporarily/completely choose their future academic pathways, with certain organisations openly becoming aggressive to entice students into their fold.
CCPA’s Intervention
Taking cognisance of these market sentiments, the CCPA introduced the “Guidelines for Prevention of Misleading Advertisements in the Coaching Sector” on November 13, 2024.
Aspire to prevent false or misleading recruitment claims from coaching centres when advertising and try to make advertisement not misleading by proper composition.
Subsequently, after the longitudinal study on the guidelines of misleading advertisement, the CCPA has undertaken investigations into various coaching centres, identifying them as levying misleading advertisements and issuing show-cause notices to 45 institutions; of these, 19 were levied penalties of ₹61.6 lakh with the additional instruction to stop their misleading advertisements and questionable practices right away.
Consumer Grievance Redressal
In an effort to make the National Consumer Helpline (NCH) actively involved in addressing grievances at the stage of pre-litigation, the Department of Consumer Affairs has strengthened the NCH in order to establish a base for all consumer information, a central platform through which consumers across India can file complaints about goods, services, or unfair trade practices through WhatsApp, SMS, email, or a mobile app-and in interactive communications in 17 Indian languages.
The ease of function makes it easy for consumers wishing to lodge complaints.
Resolution of Student Complaints
The NCH has been working to address the complaints of students attending coaching centers for competitive examinations like the UPSC Civil Services and IIT entrance few months down the line. Complaints of unfair practices by coaching centers toward students, including the non-refunding on enrollment fees, were rampant. NCH took special care to redress these grievances, and the amount refunded to affected students reached a total of₹ 1.15 crore. The entire exercise has put forth the government’s proactive stance of safeguarding students’ interests and holding coaching centers accountable.
Industry Collaboration
More than 1000 companies, including coaching centers, have volunteered to be part of the ‘Convergence’ program when they come together to promptly resolve grievances. These firms provide feedback to customers through the central portal, which showcases their commitment to fair practices and customer satisfaction.
Implications for the Coaching Industry
Strict action taken by the CCPA serves as a warning to coaching centers across the nation. Institutions now would be required to comply strictly with advertising regulations, ensuring all promotional content is accurate and factually verified.
This should ward off misleading information in the education sector, allowing students to make informed decisions free from interference of dubious claims.
Government action against misleading ads in the coaching sector is reflective of a broader commitment to consumer rights and fair trade practices.
The CCPA is calling on educational institutions to be responsible for deceptive marketing strategies employed against students, thus upholding the industry’s sanctity.
Such regulatory measures remain a requisite as long as the education sector continues evolving to uphold the trust and transparency that must exist between service providers and consumers.
