India, May 15 -- The Government of India has issued a release:
The Central Consumer Protection Authority (CCPA) has passed final orders against Motion Education Pvt. Ltd., imposing a penalty of Rs.10 lakh, and against Career Line Coaching (CLC), Sikar, imposing a penalty of Rs.5 lakh, for indulging in misleading advertisements, unfair trade practices, and violation of consumer rights under the Consumer Protection Act, 2019.
The decision was taken to protect and promote the rights of consumers as a class and to ensure that no false or misleading advertisement is made in respect of any goods or services in contravention of the provisions of the Consumer Protection Act, 2019.
The Central Consumer Protection Authority (CCPA), headed by Chief Commissioner, Smt. Nidhi Khare, and Commissioner, Shri Anupam Mishra, passed the Orders against Motion Education Pvt. Ltd. and Career Line Coaching (CLC), Sikar after observing that the coaching institutes made tall claims and prominently used the names, photographs, and achievements of successful candidates in IIT-JEE and NEET examinations while concealing important information regarding the specific courses opted by such candidates.
Case of Motion Education Pvt. Ltd.: Claims were made as follows -
CCPA took Suo motu cognizance of misleading advertisements published by the Institute on its official website, YouTube channel, Instagram account, and newspaper advertisements. CCPA observed that the institute prominently displayed the names and photographs of successful candidates while simultaneously advertising its paid programmes such as "Full Time Classroom Programme", "Residential Programme", "Nurture Batch", "Enthuse Batch", and "Dropper/Leader Batch", without disclosing the actual courses undertaken by the successful candidates.
Investigation conducted by the Director General (Investigation) revealed that a majority of the students featured in the advertisements were enrolled in "I-Eklavya (Online)" courses. CCPA observed that "I-Eklavya" course is a premier rankers' batch for JEE and NEET aspirants, offered in both online and offline formats, and provided free of cost to selected students through a test and interview process. However, the advertisements failed to disclose this important information i.e. course opted by successful candidates.
It was further found that the institute had also used the names and photographs of certain students who enrolled with the institute after the examination had already been conducted, thereby falsely attributing their success to the institute for promotional purposes. The investigation further observed that names and photographs of students were used without obtaining proper consent from the students or their parents/guardians.
CCPA found that the institute failed to substantiate several claims made in the advertisements despite repeated opportunities and directions to furnish documentary evidence. The Authority held that concealment of important information regarding the nature of the courses undertaken by successful candidates amounted to a misleading advertisement under Section 2(28) and an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019.
Case of Career Line Coaching (CLC), Sikar: Claims were made as follows -
CCPA took suo motu cognizance of misleading advertisements published by Career Line Coaching (CLC), Sikar on its official website and through newspaper advertisements. CCPA observed that the institute prominently featured successful candidates and simultaneously promoted various classroom programmes while concealing important information regarding the actual courses opted for by such candidates.
The investigation conducted by the Director General (Investigation) revealed that the institute failed to provide documentary evidence to substantiate its claims despite repeated opportunities. The investigation also found that several students whose names and photographs were used in the advertisements were enrolled only for test series courses, which was deliberately concealed in the advertisements.
CCPA further observed that the institute took contradictory stands regarding its claim of "1650+ CLCians in MBBS, IIT & Others". In its written submission, the institute stated that the figure represented cumulative selections since 1996, whereas during the hearing it claimed that the figure pertained only to the year 2024. The Authority held that such contradictory submissions rendered the claim unsubstantiated and misleading.
The Authority also found that both institutes failed to provide documentary evidence demonstrating that written consent had been obtained from successful candidates subsequent to declaration of results, as mandated under the Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024.
The CCPA had directed both coaching institutes to discontinue the misleading advertisements with immediate effect, desist from publishing misleading advertisements in future, and make truthful and complete disclosures in future advertisements. However, both institutes have challenged the Orders passed by the CCPA by filing appeals before the National Consumer Disputes Redressal Commission (NCDRC).
The Consumer Protection Act, 2019 confers upon consumers the right to be informed, which includes the right to receive truthful and accurate information enabling them to make informed choices. Misleading advertisements undermine this right and adversely affect consumer interest, particularly in the field of education where aspirants invest significant time, effort, and financial resources.
The CCPA observed that concealment of important information regarding the specific courses opted for by successful candidates, including whether such candidates attended full-time classroom programmes, online courses, foundation batches, crash courses, or merely test series, amounts to misleading advertisement under the Act.
So far, the CCPA has issued more than 60 notices to coaching institutes for misleading advertisements and unfair trade practices in order to safeguard the interests of students and to ensure transparency in the coaching sector. Following detailed examination and investigation, the CCPA has imposed penalties amounting to over Rs.1.39 crore on 31 coaching institutes offering coaching for examinations such as UPSC Civil Services Examination (CSE), IIT-JEE, NEET, RBI and other competitive examinations.
(Final Order is available on the Central Consumer Protection Authority website: https://doca.gov.in/ccpa/orders-advisories.php?page_no1)
Disclaimer: Curated by HT Syndication.
