Guidelines to Prevent Misleading Advertisements in Coaching Sector

Source: This post on Guidelines to Prevent Misleading Advertisements in Coaching Sector has been created based on the article “Central Consumer Protection Authority Issues Guidelines for “Prevention of Misleading Advertisement in Coaching Sector” published in PIB on 14th November 2024.

Why in news?

The Central Consumer Protection Authority (CCPA) has introduced the “Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024” to protect students and prevent deceptive marketing by coaching centers. This move aims to ensure transparency, prevent unfair practices, and support students’ rights.

Key Definitions in the Guidelines

1. “Coaching”: Covers academic support, education, and study programs but excludes counseling, sports, arts, and creative activities.

2. “Coaching Center”: Defined as any institution providing coaching to over 50 students.

3. “Endorser”: It refers to any individual endorsing coaching centers, responsible for verifying the truthfulness of their endorsements.

Highlights of the Guidelines

1. Regulation of Advertisements: It prohibits misleading claims about courses, faculty qualifications, fees, and refund policies. It bans exaggerated success rates, selection assurances, and job guarantees. It also prohibits false promises of high scores, assured admissions, and exam rankings.

2. Truthful Representation: Coaching centers must accurately represent their facilities, infrastructure, and resources.

3. Student Success Stories and Testimonials: Coaching centers cannot use student names, photos, or testimonials in advertisements without written consent post-success. This rule aims to prevent undue pressure on students to endorse centers preemptively.

4. Transparency and Disclosure: All advertisements must disclose important details like student name, rank, course details, and whether the course was paid. Disclaimers must be clear and as prominent as other key information to avoid misleading consumers.

5. Prevention of False Urgency: The guidelines prohibit tactics that create false urgency, like implying limited seats, to pressure students into quick decisions.

6. Link with National Consumer Helpline (NCH): Coaching centers must partner with NCH, allowing students to raise complaints regarding misleading practices more easily.

7. Fair Contracts: It prohibits unfair contract terms and restricts the use of successful candidate testimonials without their post-selection consent.

8. Enforcement and Penalties: Violations will be considered breaches of the Consumer Protection Act, 2019, allowing the CCPA to impose penalties and ensure accountability.

CCPA Actions and Penalties

1. Enforcement: The CCPA has taken proactive action by issuing notices to 45 coaching centers for misleading advertisements, imposing fines totaling Rs. 54,60,000 on 18 coaching institutes.

2. Complaint Resolution: The NCH has registered increasing student complaints, from 4,815 in 2021-2022 to over 16,276 in 2023-2024, highlighting the rising trust in NCH’s services.

3. Refund Drive: From September 2023 to August 2024, the NCH facilitated refunds of ₹1.15 crore to students affected by misleading practices, particularly non-refunded enrollment fees.

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