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Source: The post misleading advertisements by coaching institutes has been created based on the article “The learning curve-Testimonial ads by coaching schools should be curbed” published in “Business standard” on 1st December 2023.
UPSC Syllabus Topic: GS paper 2- governance- Issues relating to development and management of Social Sector/Services relating to Education.
News: The article discusses how Central Consumer Protection Authority (CCPA) is tackling misleading practices by coaching institutes. These institutes falsely claim top students as their own to attract more business. The authorities are penalizing some institutes and urging new rules to stop this.
About central consumer protection authority (CCPA)
The Central Consumer Protection Authority (CCPA), established in 2020, functions as a regulatory body under the Consumer Protection Act of 2019 and falls within the purview of the Ministry of Consumer Affairs.
In 2022, the CCPA introduced the ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements’. Misleading advertisements are already defined in section 2(28) of the Consumer Protection Act, 2019.
Additionally, the new guidelines specifically define terms such as “bait advertisement”, “surrogate advertisement”, and clearly outline what is considered as “free claim advertisements”.
For more information on CCPA and Consumer Protection Act, 2019 read here
What is the Issue with Coaching Institutes?
Misleading advertisements: Coaching institutes engage in “rank shopping,” where they falsely claim top-ranking candidates as their students. These claims are often exaggerated; for example, in 2022, while 933 candidates passed the civil service exam, coaching institutes claimed over 3,500 passed. Similar misleading practices are seen in coaching for other exams like JEE and NEET.
Exploitation: The institutes exploit the financial and aspirational vulnerabilities of students and their families, promising success that is often not delivered.
Why do students participate in these Ads?
For financial gain: The high cost of attending coaching classes, often running into lakhs, is a significant burden, especially for middle- and lower-middle-class families.
What action is the CCPA taking?
CCPA conducted a two-month investigation into these practices. As a result, a) they sent notices to 20 coaching institutes for misleading advertising. b) Penalties were imposed on four institutes. c) They have asked the government’s Department of Personnel and Training to enforce conduct rules, to prevent candidates who pass the civil-services exam from engaging in testimonial advertisements.
This move by the CCPA is part of a broader effort to address unethical practices in the education sector, particularly in the coaching industry for competitive exams like civil services, JEE, and NEET.
Question for practice:
Examine how the CCPA is addressing the issue of misleading advertising practices by coaching institutes in India?
