CCPA issues new guidelines to tackle misleading ads in coaching sector

In a bid to uphold consumer rights and bring transparency to India’s coaching sector, the Central Consumer Protection Authority (CCPA) has released detailed guidelines aimed at curbing misleading advertisements in coaching services. Titled ‘Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024’, the document seeks to protect students from deceptive practices commonly used by coaching centres. Speaking to the media, Nidhi Khare, Chief Commissioner of the CCPA, explained that the guidelines were introduced in response to widespread public concern about the sector’s advertising practices.

The guidelines were formulated with input from a committee chaired by the former Chief Commissioner of the CCPA, featuring representatives from the Ministry of Education, the Department of Personnel & Training, and several institutions, including National Law University (NLU) Delhi and Lal Bahadur Shastri National Academy of Administration. Following discussions and public feedback from 28 stakeholders, such as the Ministry of Education, ALLEN Career Institute, and the India EdTech Consortium, the draft guidelines were finalised.

The guidelines establish a strict regulatory framework to prevent exaggerated claims, deceptive success rates, and false guarantees. Key provisions include prohibiting coaching centres from claiming unsubstantiated course outcomes, such as guaranteed admissions, high scores, or job security, and enforcing accurate representations of infrastructure and faculty. Notably, coaching centres must also secure written consent from students to use their photos or testimonials in advertisements post-success to mitigate undue pressure during enrolment.

Additional measures ensure full disclosure of course details, fees, and refunds, with disclaimers displayed prominently. To tackle common sales tactics, the guidelines bar coaching centres from creating a false sense of urgency to coerce enrolments. Additionally, each centre must integrate with the National Consumer Helpline, allowing students to lodge complaints more easily regarding misleading advertisements and unfair practices.

Violations of these guidelines will be treated under the Consumer Protection Act, 2019, with penalties imposed by the CCPA. In recent actions, the CCPA issued 45 notices to coaching centres for misleading advertisements, resulting in ₹5.46 million in penalties across 18 institutions. The National Consumer Helpline has played a proactive role, logging over 16,000 complaints in the past year and facilitating ₹1.15 crore in refunds for affected students between September 2023 and August 2024.

Khare emphasised the importance of industry collaboration in implementing the guidelines, adding that the CCPA aims to prevent exploitation in the coaching sector, benefiting both consumers and the broader education ecosystem.