CCPA slaps Rs 11 lakh penalty on Vision IAS for misleading ads

The Central Consumer Protection Authority (CCPA) has fined coaching institute Vision IAS Rs11 lakh for publishing misleading advertisements about its students’ performance in the UPSC Civil Services Examination, a first case of penalty for repeat offence under consumer protection laws. The CCPA found that the institute, officially registered as AjayVision Education Pvt Ltd, deliberately concealed information about which courses successful candidates had actually enrolled in, creating a false impression that all toppers had taken its expensive foundation courses running into lakhs of rupees.

“This is the first case of penalty on the second offence,” CCPA Chief Commissioner and Consumer Affairs Secretary Nidhi Khare told PTI. “Despite regulatory intervention and caution, the institute continued to make similar claims in its subsequent advertisements, demonstrating a lack of due diligence and regulatory compliance.”

The institute’s advertisements prominently claimed “7 in Top 10 and 79 in Top 100 selections in CSE 2023” and “39 in Top 50 selections in CSE 2022,” featuring photographs, names and ranks of successful candidates. However, the CCPA’s investigation revealed that of the 119-plus successful candidates Vision IAS claimed for UPSC CSE 2022 and 2023, only three had enrolled in foundation courses. The remaining 116 had merely opted for services such as test series for preliminary and mains examinations, one-time Abhyaas tests and mock interview programmes.

The Authority noted that, while the institute disclosed that Shubham Kumar (AIR 1, UPSC CSE 2020) had enrolled in the GS Foundation Batch (Classroom Student), it deliberately concealed similar information about other successful candidates displayed alongside him. This created a misleading impression that all featured candidates were enrolled in the same premium course. “In view of the recurring nature of the violation, the present instance was treated as a subsequent contravention, warranting the imposition of a higher penalty in the interest of protecting consumers,” the CCPA said in a Statement.

The Authority observed that such deliberate concealment of material information misled aspirants and parents into believing Vision IAS was responsible for candidates’ success across all stages of the examination, constituting a misleading advertisement under Section 2(28) of the Consumer Protection Act, 2019. The CCPA also highlighted that unlike print media, websites remain accessible globally for extended periods and serve as the primary platform through which aspirants research coaching institutes in the digital era.

Projecting claims without proper authorisation or consent from students further compounded the misleading nature of the advertisements. “In highly competitive examinations such as the UPSC Civil Services Examination, where lakhs of aspirants invest substantial time, effort and financial resources, such incomplete and selective disclosures mislead students and parents by creating false expectations regarding outcomes and the effectiveness of coaching services,” the authority Stated.

So far, the CCPA has issued 57 notices to various coaching institutes for misleading advertisements and unfair trade practices. Penalties totalling Rs1.09 crore have been imposed on 28 institutes, along with directions to discontinue such misleading claims. The Authority emphasised that all coaching institutes must strictly ensure truthful and transparent disclosure of information in their advertisements, enabling students to make fair and informed academic decisions.