CCPA fines coaching institute for misleading ads on UPSC exam results

New Delhi (The Uttam Hindu): The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 2 lakh for misleading advertisement on Shubhra Ranjan IAS Study regarding the UPSC Civil Service Exam 2023 and has directed the coaching institute to discontinue the misleading advertisements with immediate effect

“The decision was taken to protect and promote the rights of consumers as a class and ensure that no false or misleading advertisement is made of any goods or services which contravenes the provisions of the Consumer Protection Act,” according to an official statement issued on Sunday.

“In view of the violation of the Consumer Protection Act, 2019, the CCPA, headed by Chief Commissioner Nidhi Khare, and Commissioner Anupam Mishra has issued an Order against Shubhra Ranjan IAS Study for misleading advertisement regarding UPSC Civil Service Exam 2023,” the statement said.

Coaching Institutes and online edtech platforms use pictures and names of successful candidates to influence prospective aspirants, without disclosing the courses opted by such candidates or the fees paid by them and the length of the course so attended, the statement pointed out.

Shubhra Ranjan IAS Study in its advertisement made the following claims: 13 students in the Top 100, 28 students in the Top 200, and 39 students in the Top 300 in UPSC CSE 2023.

Further, the advertisements prominently depicted photographs and names of the successful candidates of the UPSC Civil Service Exam 2023, without mentioning any information about the specific course opted for by such candidates.

Shubhra Ranjan IAS Study prominently displayed successful candidates’ names and pictures and simultaneously advertised various types of courses provided by them on its official website. However, the information concerning the course opted by the said successful candidates in the UPSC Civil Service exam 2023 was not disclosed in the advertisement.

The institute offers nearly 50+ courses. However, the DG Investigation report found that most of the claimed successful students took the Political Science and International Relations (PSIR) crash course and test series which comes into play after clearing the preliminary examination.

By deliberately concealing information about the specific course opted by each of the successful candidates, the Institute made it look like all the courses offered by it had the same success rate for the consumers, which was not right.

It is the right of the consumer to be informed about the specific course that successful candidates have taken from the coaching institute to make it into the final selection of CSE. For the potential consumers, this information would have contributed to their making an informed choice about the course to opt for their success at CSE.

Section 2(28) (iv) of the Consumer Protection Act, 2019, defines misleading advertisements, including those which involve “deliberately concealed important information”. Information regarding the specific course opted by successful candidates is important for the consumers to know so that they can make informed choices while deciding which course and coaching institute to join.

The institute also used terms such as "Shubhra Ranjan IAS" and "Students of Shubhra Ranjan IAS" in its advertisements and letterheads, creating a deceptive impression that Mrs Shubhra Ranjan is or was an IAS officer. This constitutes a misrepresentation and unfair trade practice under the Consumer Protection Act 2019, thereby misleading the public and potential students into believing that the services or guidance provided by them are directly associated with the credibility of an IAS officer, the statement said.

The Institute submitted that it was a clerical mistake, which is not tenable as the term Shubhra Ranjan IAS or @shubhraranjanias has been frequently used on its letterheads and in its advertisements. The institute utilized deceptive practices to create a perception of exceptional quality and success. An advertisement should be a truthful and honest representation of facts by making disclosures in such a manner that they are clear, prominent and extremely hard to miss for viewers to notice, the statement added.