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Central Consumer Protection Authority (CCPA) Takes Decisive Action Against Misleading Advertisements in Coaching Sector

CCPA Penalizes Shankar IAS Academy for Misleading Advertisement on UPSC Civil Services Exam 2022

New Delhi: The Central Consumer Protection Authority (CCPA) has taken strong action against Shankar IAS Academy for misleading advertisements regarding the UPSC Civil Services Examination 2022. Headed by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra, the CCPA has imposed a penalty of ₹5 lakh on the academy for violating the provisions of the Consumer Protection Act, 2019.

The decision was made to safeguard the rights of consumers and ensure transparency in advertisements for services. As per Section 18 of the Act, CCPA is empowered to act against any misleading or false advertisement that contravenes the rules and regulations of the Act.

Misleading Claims

Shankar IAS Academy’s advertisement made several bold claims regarding the UPSC Civil Services exam results, including:

  • “336 selections out of 933 at All India Level”
  • “40 candidates in Top 100”
  • “42 candidates cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy”
  • “Best IAS Academy in India”

Upon investigation, the CCPA found that the academy had concealed crucial details regarding the courses opted for by the advertised successful candidates. The misleading nature of the ad led consumers to believe that all the successful candidates had enrolled in paid courses offered by the academy, which was not the case.

Concealed Information

The academy provided details of only 333 successful candidates against its claim of 336. Of these, 221 candidates participated in the Free Interview Guidance Programme, and only a small fraction had taken paid courses such as the Mains and Prelims Test Series. This crucial information was omitted from the advertisement, misleading prospective UPSC aspirants into thinking that enrolling in the academy’s paid courses would guarantee success.

In a glaring example of misinformation, the CCPA found that 18 candidates who had purchased the academy’s Preliminary course had enrolled after the 2022 UPSC exam had already been conducted. Yet, these candidates were falsely included in the academy’s claimed selections for the 2022 exam.

Impact on Consumers

Chief Commissioner Nidhi Khare emphasized the far-reaching impact of such misleading advertisements, particularly on UPSC aspirants, who number in the millions each year. “Such advertisements should contain truthful and honest representations of facts,” she stated, adding that full transparency about the role of coaching institutes in a candidate’s success is essential to protect consumers from unfair trade practices.

Broader Investigation into Coaching Institutes

The CCPA’s inquiry into Shankar IAS Academy is part of a broader effort to scrutinize the advertising practices of coaching institutes. The authority has issued notices to several institutes for similar deceptive practices, where successful candidates are prominently featured in advertisements without clear disclosure of their involvement in the institute’s paid or free programs.

The CCPA is committed to ensuring that coaching institutes provide accurate and detailed information to prospective students, allowing them to make informed decisions about their education and training.

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