New Delhi: In a major move to protect students and promote transparency, the Central Consumer Protection Authority (CCPA) has introduced the Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024. These guidelines address deceptive marketing tactics in the coaching industry, safeguarding students and parents from exaggerated claims and unfair contracts, announced Smt. Nidhi Khare, Chief Commissioner of the CCPA, during a media briefing.
The guidelines follow recommendations from a committee that included representatives from key educational and consumer bodies, including the Department of Consumer Affairs, Ministry of Education, and National Law University Delhi. The public was also invited to share feedback, with responses from organizations like ALLEN Career Institute and the India EdTech Consortium shaping the final version.
Key Highlights of the New Guidelines
- Regulation of Advertisements: The guidelines prohibit coaching centers from making false claims about courses, fees, selection rates, or job assurances. Institutes must accurately represent faculty qualifications, refund policies, and other offerings without exaggeration.
- Truthful Representation: Coaching centers are required to accurately depict their infrastructure, resources, and facilities. Misleading representations about the quality or standards of their services are strictly prohibited.
- Use of Students’ Success Stories: Coaching centers can no longer use students’ names, photos, or testimonials in advertisements without their written consent, which must be obtained post-success. This aims to alleviate the pressure on students to sign agreements upfront.
- Transparency and Disclosure: Important information, such as students’ names, ranks, and course details, must be disclosed clearly in advertisements. Disclaimers must be in the same font size as other crucial information, making it easy for consumers to identify essential details without being misled by fine print.
- No False Urgency: Tactics that create a false sense of urgency, such as limited-time offers or exaggerated demand, are now restricted, preventing coaching centers from pressuring students into hasty decisions.
- Convergence with National Consumer Helpline (NCH): All coaching centers must now partner with the NCH, allowing students to report concerns about misleading advertisements and unfair practices directly.
- Fair Contracts: The guidelines prevent coaching centers from imposing unfair contracts on students, such as those involving mandatory use of students’ photos or testimonials without their consent.
- Enforcement and Penalties: Violations of these guidelines will be treated as contraventions under the Consumer Protection Act, 2019. The CCPA has authority to impose penalties and enforce compliance.
According to Smt. Khare, the guidelines are a “crucial step” in preventing exploitation within the sector, enabling students and their families to make well-informed decisions based on transparent information.
Recent Actions and Student Support
In addition to introducing the guidelines, the CCPA has been proactive in addressing misleading advertisements. It issued 45 notices to coaching centers and imposed fines totaling
₹54.6 lakh on 18 institutions, directing them to discontinue misleading advertisements.
The Department of Consumer Affairs, through the National Consumer Helpline (NCH), has also been actively assisting students in pre-litigation grievance resolution. Between 2021 and 2024, NCH received an increase in complaints regarding unfair practices in the coaching sector. This year alone, 6,980 students have sought assistance from NCH, reflecting students’ growing trust in the helpline’s support.
Responding to numerous complaints, especially regarding non-refundable enrollment fees, the NCH facilitated refunds amounting to ₹1.15 crore for affected students from September 2023 to August 2024. All refunds were processed swiftly at the pre-litigation stage, sparing students from lengthy legal procedures.
The guidelines are publicly available on the Department of Consumer Affairs website for reference and are expected to bring much-needed transparency and fairness to the coaching sector, supporting consumer rights and reinforcing trust in India’s educational ecosystem.