The Central Consumer Protection Authority (CCPA) has fined Shubhra Ranjan, an IAS Student, Rs 2 lakh for deceptive advertising.
The judgment was issued to preserve and promote consumer rights and guarantee that no deceptive or misleading advertising of products or services violates the Consumer Protection Act of 2019.
The CCPA, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, issued an Order against Shubhra Ranjan IAS Study for misleading marketing regarding the UPSC Civil Service Exam 2023, violating the Consumer Protection Act, 2019.
Coaching institutes and online platforms resort to deceptive practices.
Coaching institutes and online platforms often resort to deceptive practices, such as using photographs and names of successful candidates to lure future aspirants (consumers) without providing crucial information about their courses, prices, or course length. This should serve as a caution to all consumers.
In its advertising, Shubhra Ranjan IAS Study claimed “13 students in Top 100”, “28 students in Top 200,” and “39 students in Top 300” ranks in the UPSC Civil Services Examination (CSE) 2023. The ads showed the successful candidates’ photos and names but did not specify their institution courses or degrees.
Shubhra Ranjan IAS Study extensively featured successful candidates’ names and images and marketed their courses on its website. The advertising above does not disclose the course chosen by the UPSC Civil Service exam 2023 winners.
The coaching center deliberately concealed important information
The institute offers over 50 courses. The investigation report indicated that most declared successful students completed a Political Science and International Relations (PSIR) crash course and test series after passing Preliminary.
The institute misled clients by hiding the course chosen by each successful candidate, making it appear that all its courses had the same success rate.
It is worth mentioning that under Section 2(28) (iv) of the Consumer Protection Act, 2019, misleading ads include those that “deliberately conceal important information.” Consumers need to know which course successful applicants choose to make educated decisions about the course and coaching school to attend.
Shubhra Ranjan IAS Study involved in deception and unfair trade behavior
Institute utilized “Shubhra Ranjan IAS” and “Students of Shubhra Ranjan IAS” in its marketing and letterheads to misrepresent Ranjan as an IAS official.
This is a deception and unfair trade behavior under the Consumer Protection Act 2019, fooling the public and potential students into believing that their services or advice are directly related to IAS officer legitimacy.
The institute lied to project high quality and success. Advertising should be accurate and honest by making disclosures plain, conspicuous, and impossible to overlook.
The CCPA ordered the institute to discontinue printing false ads immediately and pay a penalty of ₹ 2,00,000.
Also fined: 20 other questionable coaching centers
The CCPA has been proactive in taking action against false coaching institute ads. It has issued 45 notices to coaching establishments for deceptive ads and fined 20 tutoring schools 63 lakhs 60 thousand. This should reassure the public that their rights are being protected.
On November 22, 2024, the Central Consumer Protection Authority (CCPA) fined Vajirao & Reddy Institute ₹ 7 Lakh for misleadingly promoting the UPSC CSE 2022 results. The institute advertised “617 selections out of 933 in UPSC CSE 2022” and “We are ranked at 1st position among the list of top UPSC Coaching Institutes in Indi”.”
According to the CCPA, all 617 successful candidates registered in the free Interview Guidance Programme. The CCPA ordered Vajirao & Reddy Institute to stop the deceptive marketing immediately.
The National Consumer Helpline (NCH) of the Department of Consumer Affairs has intervened pre-litigation to secure justice for UPSC Civil Services, IIT, and other entrance test students and hopefuls.
The National Consumer Helpline received numerous complaints about unfair practices by coaching centers, including not refunding enrolment fees. NCH launched a mission to resolve these grievances and ensure a total refund of ₹ 1.15 cr. to 432 affected students (from 1st Sep ’23 to 31st Aug’ 24).
All these reimbursements were processed quickly at a pre-litigation stage when the department intervened to help impacted students from around the country who complained to NCH.