CCPA Fines 19 Coaching Centres Rs 61.6 Lakh For Misleading Ads

The Central Consumer Protection Authority (CCPA) has intensified its crackdown on misleading advertisements in the coaching industry. On 13 November 2024, the CCPA issued the 'Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024' to curb deceptive practices and protect consumers. These guidelines aim to prevent coaching centres from making false claims to promote their services.

As part of this initiative, the CCPA has issued 45 notices to coaching institutes found guilty of publishing misleading advertisements. Furthermore, 19 centers have been fined a total of Rs 61.6 lakh for violating consumer protection laws. These institutes have been ordered to cease all deceptive advertisements and unfair trade practices that harm students and their families.

The CCPA, established under Section 10 of the Consumer Protection Act, 2019 is tasked with safeguarding consumer rights and addressing unfair trade practices. This move aligns with broader efforts to modernize the consumer protection framework in response to challenges posed by globalisation, technological advancements and the growth of ecommerce.

To further strengthen consumer protection, the Department of Consumer Affairs has enhanced the National Consumer Helpline (NCH), which serves as a centralised platform for grievance redressal. The NCH allows consumers to lodge complaints about goods, services, and unfair practices through multiple channels including WhatsApp, SMS, email, and mobile apps and operates in 17 languages.

Recently, the NCH has played a key role in addressing complaints from students preparing for exams like the UPSC Civil Services and IIT entrance examinations. Many grievances involved non-refund of enrollment fees, prompting swift intervention. As a result, Rs 1.15 crore was refunded to affected students, showcasing the helpline’s effectiveness.

The NCH also partners with over 1,000 companies under its ‘Convergence’ program, which promotes voluntary collaboration for faster grievance resolution. These companies provide direct feedback to consumers through a centralised portal, ensuring transparency and accountability.

These actions, highlighted by Union Minister of State for Consumer Affairs B L Verma in a written reply to the Rajya Sabha on 16 December 2024, reaffirm the government’s commitment to enhancing consumer protection. By enforcing fair practices in the coaching sector and beyond, the CCPA and NCH are safeguarding the rights of millions and promoting trust in critical industries like education.