The success of '12th Fail' not only enchanted the movie aficionados in India but also unveiled the clandestine corridors of competitive exams coaching centers, where Institutes pay top-performing students exorbitant sums, turning education into a transactional affair. It is no secret that the competitive exams coaching industry in India has witnessed unprecedented growth, evolving from being exclusively linked to competitive exams to becoming an integral part of regular education. With a market revenue of a staggering Rs. 58,000 crores 1 and a compound annual growth rate (CAGR) of 7 to 8%, the coaching sector is expected to reach around 1.33 lakh crores by the end of the decade. However, this expansion has brought forth challenges, including cases of misleading claims, violations, and fraudulent practices.

Competitive exams coaching centers and Misleading Ads

The recent issues plaguing the coaching industry in India primarily revolve around misleading advertisements and deceptive practices employed by certain coaching institutes. Some of the prominent cases involve several name brand and popular institutes. These institutes have faced allegations of making false claims, providing exaggerated success rates, and guaranteeing outcomes that are often impossible to fulfill. These practices not only mislead students but also create unhealthy competition and pressure within the education sector.

One significant case 2 involves the imposition of a fine of Rs 1 lakh against IQRA IAS Institute by the CCPA. The fine was levied due to misleading advertisements related to testimonials of top-rank holders in the UPSC civil service exam. This action by the CCPA underscores the need for a regulatory framework to curb such misleading practices within the coaching industry. Recognizing the need for comprehensive guidelines, the CCPA has released draft regulations for the prevention of misleading advertisements in the coaching sector.

CCPA Draft Guidelines 3

The draft guidelines released by the Central Consumer Protection Authority (CCPA) aim to address and rectify the issues prevalent in the coaching sector. These guidelines provide a comprehensive framework to regulate the industry and ensure that coaching institutes operate transparently and responsibly. Some key aspects of the draft guidelines include:

  • Definition of Coaching:
    The guidelines explicitly define coaching as any form of tuition, instruction, academic support, learning programs, or guidance provided by individuals or institutions. This clear definition sets the scope for the regulations to cover a broad spectrum of coaching services.
  • Conditions for Misleading Advertisements:
    The guidelines outline specific conditions that, if violated, would categorize an advertisement as misleading. These conditions include concealing important information, making false claims, creating a false sense of urgency, and engaging in any other practices that may mislead consumers.
  • Obligations for Coaching Institutes:
    The guidelines lay out obligations for coaching institutes, emphasizing transparency and accuracy in their advertisements. These obligations include the disclosure of essential information about successful candidates, the use of disclaimers, providing accurate information about services, and maintaining truthful representation in advertisements.
  • Prohibition of Certain Practices:
    The guidelines explicitly prohibit practices such as using names, photos, testimonials, or videos of successful candidates in advertisements without their express consent. Additionally, false claims like 100% selection guarantees, job guarantees, or guaranteed admissions are strictly forbidden.
  • Faculty Credential and Course Recognition:
    Coaching institutes are barred from making exaggerated claims about faculty credentials or falsely representing the standard and quality of their services. Misleading claims about the recognition and approval of courses or certificates by competent authorities are also prohibited.
  • Consumer Protection Focus:
    Overall, the draft guidelines are centered on consumer protection, aiming to prevent misleading advertisements that can have a detrimental impact on students and parents. By clearly defining acceptable practices and imposing obligations on coaching institutes, the guidelines seek to create a level playing field and ensure that consumers make informed decisions when choosing coaching services.

Conclusion

The release of these draft guidelines is a significant step towards bringing accountability and transparency to the coaching industry. By addressing misleading advertisements and deceptive practices, the CCPA aims to safeguard the interests of consumers and create a more informed and responsible coaching ecosystem. The public consultation process will further refine these guidelines, ensuring a balanced and effective regulatory framework for the rapidly expanding coaching industry in India.

Footnotes

1 Available at: https://timesofindia.indiatimes.com/readersblog/spiritedparagons/has-coaching-subjugated-teaching-in-india-51976/

2 Available at: https://pib.gov.in/PressReleasePage.aspx?PRID=1953173

3 Available at: https://consumeraffairs.nic.in/sites/default/files/file-uploads/latestnews/Public%20Comments%20Letter%202.pdf

Related Posts

Advisory issued Regarding 'Misleading Advertisement'- CCPA

Influencer Marketing Social Media- Misleading Advertisements Draft Guidelines

For further information please contact at S.S Rana & Co. email: info@ssrana.in or call at (+91- 11 4012 3000). Our website can be accessed at www.ssrana.in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.