In a strict warning to coaching centers, the Central Consumer Protection Authority (CCPA) has advised them to refrain from making misleading claims, advertising guaranteed success in examinations.

Coaching centres that prepare students for competitive exams like IIT-JEE, NEET, and UPSC were asked to adhere to the Consumer Protection Act, 2019 and Guidelines for the Prevention of Misleading Advertisements in the Coaching Sector, 2024.

The consumer watchdog stressed that it is essential that representations made by these centres are accurate, clear, and free from misleading claims or the concealment of important information from consumers. Many aspiring candidates are influenced by big billboards of coaching businesses that promise success. They flock to these centres hoping for entry into coveted institutions like IITs, AIIMs and, government services.

“Coaching centres must clearly disclose key details in their advertisements, including the student’s name, rank, course type, and whether the course was paid. Disclaimers must be prominently displayed in the same font size as other important information to ensure consumers are not misled,” the Ministry of Consumer Affairs, Food and Public Distribution said in a statement. Additional measures were taken because many coaching organisations “auction” students who receive good ranks in order to brand their coaching centres.

CCPA has recently issued notices to few coaching institutes pertaining to issues like: guaranteed placement/selection, assurance of rank in JEE/NEET, violation of consumer rights, misleading advertisement and, unfair trade practices, including promised services not being provided, admission cancelled but fee not refunded, deficiency in service, non/partial refund of fees.

In a significant move to protect consumer rights and ensure transparency in the coaching sector, the CCPA has, over the past three years, taken action against misleading advertisements, unfair trade practices and violations of consumer rights by coaching centres. In this regard, the CCPA has issued 49 notices and imposed a total penalty of ₹77.60 lakhs on 24 coaching centres and directed them to discontinue misleading advertisements and unfair trade practices.

CCPA’s timely intervention and enforcement of rules can be a substantial deterrent to coaching centres who resort to malpractices to draw more customers. It will also enable students to choose wisely basis a transparent cost benefit analysis. For many Indians, opting for coaching classes is a significant financial decision.