Centre issues new guidelines to regulate misleading advertisements by coaching institutes

The Central Consumer Protection Authority (CCPA) has issued guideline that all coaching institutes must disclose relevant information regarding their students and courses to prevent parents and candidates from being mislead. Consumer Affairs Secretary Nidhi Khare issued a set of guidelines in New Delhi against the misleading advertisement used by various coaching institutes.

The guidelines require coaching institutes to prominently display any disclaimer and clarification regarding its functioning while consent is required for use of photograph and testimonial from minor candidates only after their selection. As per the guidelines, the institutes must also accurately declare their services, facilities and infrastructure. The guidelines have established clear definitions of Coaching, Coaching Center and Endorser.

The Secretary further warned against advertising false and



unverified claims, guarantees and success rate. She mentioned that nine UPSC coaching institutes had claimed cummulatively over 2 thousand 600 selections during civil services exam last year, however, only around 1 thousand candidates were selected in that year. The CCPA has so far issued notice to 45 UPSC coaching institutes and claimed over 56 lakh rupees in penalties for misleading advertisements. Repeated violations may lead to higher penalties and even suspension.

The coaching institutes must also have a pro-active consumer grievance redressal mechanism. So far over one crore rupees have been refunded by the institutes after intervention from the National Consumer Helpline from September last year to August this year. The Secretary highlighted that these guidelines will bring transparency and truthfulness to inform the consumer better.