CCPA Fines Coaching Institutes for Misleading UPSC Success Claims
The Central Consumer Protection Authority (CCPA) has imposed fines totaling Rs 15 lakh on three coaching institutes for misleading advertisements regarding their success rates in the Union Public Service Commission (UPSC) Civil Services Exams. The announcement was made on Thursday.
Vajirao & Reddy Institute and StudyIQ IAS each received fines of Rs 7 lakh, while Edge IAS was fined Rs 1 lakh. These penalties stem from claims made about their results in the 2022 and 2023 UPSC exams. The CCPA, led by Chief Commissioner Nidhi Khare, found that these institutes misled the public by not disclosing that most successful candidates had only participated in Interview Guidance Programs, creating a false impression of their overall course effectiveness.
For instance, Vajirao & Reddy Institute claimed “617 selections out of 933" in the 2022 exam, and StudyIQ IAS advertised “120+ selections" in 2023. However, investigations revealed that the majority of successful candidates at both institutes had only taken interview preparation courses.
Additionally, StudyIQ IAS could not substantiate its claims regarding its “Success Pakka Offer” and “Selection Pakka Offer,” as it failed to provide necessary enrollment forms and fee receipts for the claimed successful candidates. The institute advertised over 60 courses but did not clarify that its Interview Guidance Program, which many successful candidates attended, was not included in the listed courses.
The CCPA has issued 45 notices to various coaching institutes for misleading advertisements, resulting in penalties totaling Rs 71.6 lakh from 22 institutes so far. Under the Consumer Protection Act, 2019, advertisements that intentionally omit important details are deemed misleading and subject to penalties.