45 notices issued to coaching centres for misleading ads, 19 fined ₹60 lakh: Govt
MoS, consumer affairs, food and public distribution said in written response while answering to questions raised in Lok Sabha
New Delhi: The Union government has issued 45 notices to various coaching centres for misleading advertisements and imposed penalties totaling ₹61.6 lakh on 19 coaching institutes for engaging in unfair trade practices, according to a written response by union minister of state (MoS) for consumer affairs, food, and public distribution, B.L. Verma, in the Lok Sabha.
He shared this information on Wednesday while responding to questions raised by Lok Sabha lawmakers Dhairyasheel Sambhajirao Mane and Sudheer Gupta about the government’s efforts to protect students and parents from exploitation by deceptive advertising practices in the coaching sector.
On November 13, the Central Consumer Protection Authority (CCPA) released the “Guidelines for Prevention of Misleading Advertisements in the Coaching Sector, 2024,” aimed at preventing coaching centres from making false or misleading claims.
The guidelines prohibit false claims related to the number of selections, success rates, rankings, and guaranteed admissions. They also require written consent to use a student’s name, photo, or testimonial in advertisements after their success.
Under the new regulations, coaching centres must disclose whether a course fee was paid by the student or sponsored by another party.
Additionally, every coaching centre is required to partner with the National Consumer Helpline (NCH) under the ministry’s department of consumer affairs, which will help students raise concerns or complaints about misleading advertisements and unfair trade practices.
Verma said that the NCH has successfully resolved grievances from students preparing for various competitive and entrance exams, such as UPSC Civil Services, JEE, and NEET, facilitating refunds totaling ₹1.15 crore.
The government has sought to tighten regulations because of the intense competition for seats in engineering and medical programs, coupled with exaggerated success claims for civil services exams, which often led to mental distress and even suicides among aspirants, Verma added.
Recently, a penalty of ₹3 lakh was imposed on Sriram’s IAS, a coaching institute for civil services exams, due to misleading and exaggerated claims in its advertisements.
Also Read: CCPA issues guidelines to ensure transparency across coaching sector
The rise of coaching institutes and their operations has sparked significant controversy, particularly after three students drowned in the illegal basement classroom of an institute that was flooded during a cloudburst in the capital on July 28.
Concerns have also been raised in Kota, Rajasthan, known as a hub for test preparation. Students from across the country arrive to Kota after completing Class X, enrolling in residential test-prep institutes and schools, which often serve primarily for certification. Many students find the pressure of this environment stressful, particularly since they are away from their families.