Press Conference to announce a new initiative focused on protecting consumer rights and ensuring transparency in the coaching sector
The Central Consumer Protection Authority (CCPA) has released the Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024, aiming to protect consumer rights and ensure transparency in the coaching industry. These guidelines target deceptive marketing practices often seen in coaching centers and seek to safeguard students from false claims and unfair contracts.
Key Definitions and Scope of Guidelines
The guidelines define “coaching” as academic support, education, guidance, and similar activities, explicitly excluding counseling, sports, arts, and other creative fields. They also define a “coaching center” as any entity providing services to more than 50 students. Importantly, endorsers or public figures involved in promoting these coaching centers must now verify any claims made before endorsing them, making them accountable for ensuring truthfulness.
Tackling Misleading Advertisements and Claims
The guidelines specifically prohibit coaching centers from making exaggerated claims about:
- Course offerings, faculty credentials, fees, and refund policies.
- Selection rates, success stories, exam rankings, and promises of job security.
- Assured admissions, high scores, or guaranteed promotions.
Coaching centers must represent their infrastructure, resources, and facilities truthfully and cannot use students’ names, photos, or testimonials in advertisements without post-success, written consent from the student. This measure intends to ease the pressure students often feel when enrolling.
Enhanced Transparency and Disclosure Requirements
All advertisements must now clearly display key information, such as student names, ranks, and whether they paid for the course, alongside any disclaimers. Disclaimers must be prominently displayed to prevent misleading consumers through fine print. Additionally, tactics creating a false sense of urgency or limited availability to push students into quick decisions are explicitly banned.
Convergence with National Consumer Helpline
To provide an avenue for grievances, every coaching center must now be associated with the National Consumer Helpline (NCH), enabling students to report issues related to misleading advertisements or unfair practices. This integration reflects the growing trust students place in NCH; over 16,000 grievances were filed in 2023-2024, up significantly from previous years. NCH’s efforts have led to a total refund of ₹1.15 crore in fees to affected students.
Fair Contracts and Accountability for Endorsers
The guidelines also prohibit coaching centers from entering students into unfair contracts and require endorsers to verify claims before supporting them. False endorsements or success guarantees will hold both endorsers and the coaching institutes accountable, aligning with the Consumer Protection Act, 2019.
Enforcement and Penalties
Violating these guidelines may lead to stringent penalties under the Consumer Protection Act. The CCPA has already issued 45 notices and imposed penalties amounting to ₹54.6 lakh on 18 coaching institutes for misleading advertisements.
By focusing on transparency and protecting consumers from deceptive practices, these guidelines promise to bring much-needed fairness to India’s coaching sector. The CCPA’s proactive stance aims to empower students and their families with accurate information, ensuring more informed decision-making and a safer educational environment.
For more details, the full guidelines are available on the Department of Consumer Affairs website.
