nIn a significant move to protect the rights of consumers and maintain transparency in the coaching sector, the Central Consumer Protection Authority (CCPA) has issued comprehensive guidelines to address the issue of misleading advertisements in the coaching sector.

The CCPA has also taken suo moto action against 45 coaching centres and imposed penalty of Rs. 54,60,000 on 18 coaching institutes for misleading advertisements

‘Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024,’ aim to safeguard students and the public from deceptive marketing practices commonly employed by coaching centres, shared Nidhi Khare, Chief Commissioner CCPA and Secretary, Department of Consumer Affairs, Government of India while interacting with media on the subject here on Wednesday.

These guidelines were drafted in the wake of growing concerns about false/misleading claims, exaggerated success rates, and unfair contracts that coaching institutes often impose on students. Such practices have been found to mislead students, influencing their decisions by concealing important information and giving false guarantees.

The guidelines will apply to every person engaged in coaching, meaning not just the coaching centres, but also any endorsers or public figures promoting their services through advertisements.

Endorsers, who lend their name or reputation to coaching centres, will now be responsible for ensuring that the claims they endorse are accurate and truthful. Endorsers who endorse coaching institutes must verify the claims they are promoting. If they support false success rates or misleading guarantees, they will be held accountable alongside the coaching centres.

The guidelines explicitly prohibit coaching institutes from making false claims related to the courses offered, their duration, faculty qualifications, fees, and refund policies. Selection rates, success stories, exam rankings, and job security promises.

Misleading representations about the quality or standard of their services are strictly prohibited. Coaching institutes must accurately represent their infrastructure, resources, and facilities.

In a notable move, the guidelines reportedly will prevent coaching centres from using students’ names, photos, or testimonials in advertisements without their written consent-and importantly, this consent must be obtained only after the student’s success. This provision is intended to reduce the pressure student’s face when enrolling, as they are often pushed into signing such agreements upfront.

Coaching centres will need to disclose important information, such as the name, rank, and course details alongside the student’s photo in an advertisement.

Guidelines also stipulate whether the course was paid for by the student that too must be clearly stated. Additionally, any disclaimers will need to be prominently displayed, with the same font size as other important details, ensuring that consumers are not misled by fine print.

The guidelines will reportedly target the common tactic used by any person engaged in coaching i.e. creating a false sense of urgency or scarcity, such as implying limited seats or exaggerated demand, to pressure students into making immediate decisions.

Every coaching centre will be required to partner with the National Consumer Helpline, making it easier for students to raise concerns or complaints regarding misleading advertisements and unfair trade practices.

Any violation of these guidelines will be treated as a contravention of the Consumer Protection Act, 2019. The Central Authority has the power to take stringent actions against offenders, including imposing penalties, ensuring accountability, and preventing further occurrences of such deceptive practices.