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CCPA Issues Guidelines to Stop Misleading Ads in Coaching Sector

CCPA Issues Guidelines to Stop Misleading Ads in Coaching Sector

Misleading Ads in Coaching Sector – The Central Consumer Protection Authority (CCPA) has introduced the Guidelines for Prevention of Misleading Advertisements in the Coaching Sector, 2024 to combat deceptive practices in coaching advertisements. These guidelines are designed to ensure transparency and safeguard students from misleading information in coaching ads.

Key Definitions in the Guidelines

  • Coaching: Covers academic support, education, and tutoring but excludes counseling, sports, and creative arts.
  • Coaching Center: Defined as any facility providing coaching to over fifty students.
  • Endorser: Refers to individuals promoting coaching centers, bound by 2022 guidelines on truthful endorsements.

Main Provisions of the Guidelines

Regulation of Advertisements

The guidelines prevent coaching centers from making false or exaggerated claims, specifically prohibiting misleading statements related to:

  1. Courses and Faculty: Accurate information about courses, faculty qualifications, fees, and refunds must be provided.
  2. Success Rates and Guarantees: Advertisements must not exaggerate selection rates, job placements, guaranteed admissions, or promotions.
  3. Infrastructure Claims: Coaching centers must accurately describe their facilities and resources without overstatements.

Truthful Representation

Any promotional material must provide a truthful depiction of the quality and standard of services offered, including infrastructure and other resources.

Use of Student Success Stories

Coaching centers are restricted from using student testimonials, names, or images without obtaining written consent post-success. This measure ensures that students are not pressured into signing promotional agreements prematurely.

Transparency in Advertising

Advertisements should transparently display essential details, such as the student’s course, rank, and whether the course was self-funded. Disclaimers must be displayed in a prominent, readable format.

No Creation of False Urgency

The guidelines discourage tactics like creating a false sense of scarcity (e.g., “limited seats”) to push students into hurried decisions.

National Consumer Helpline Integration

All coaching centers are now required to register with the National Consumer Helpline, allowing students to report issues related to false advertisements.

Fair Contracts

Unfair contracts that obligate students to use their success for promotion are banned. Any use of successful students’ testimonials or images must have their consent post-selection.

Enforcement and Penalties

Violations of these guidelines fall under the Consumer Protection Act, 2019. The CCPA holds the authority to penalize offenders, imposing fines and ordering the removal of misleading ads.

Major Provisions in CCPA’s New Guidelines for Coaching Sector Ads

ProvisionDescription
Regulation of AdvertisementsNo false claims about courses, success rates, or guarantees.
Truthful RepresentationHonest portrayal of quality and resources.
Student Success StoriesUse of student success requires consent post-achievement.
Transparency in AdvertisingClear and accurate details in all advertisements.
No False UrgencyTactics creating artificial urgency are banned.
National Consumer HelplineCenters must register with NCH for grievance redressal.
Fair ContractsUnfair contracts are prohibited, with consent needed for student testimonials post-selection.

Misleading Ads in Coaching Sector -Background and Implementation

A committee led by the former Chief Commissioner of CCPA formulated these guidelines, consulting organizations such as the Ministry of Education, Lal Bahadur Shastri National Academy of Administration, and consumer advocacy groups. The draft guidelines, introduced in February 2024, received feedback from stakeholders like the Ministry of Education, Bureau of Indian Standards, and major coaching institutes. Public input influenced the final guidelines.

The CCPA has already begun enforcing these provisions, with 45 notices issued to coaching centers for misleading advertisements and penalties totaling ₹54.6 lakh on 18 centers. Additionally, the Department of Consumer Affairs has assisted in refunding ₹1.15 crore to students affected by unfair practices between September 2023 and August 2024.

Misleading Ads in Coaching Sector- Summary 

  • New Guidelines Issued: CCPA introduces guidelines to curb misleading ads in the coaching sector.
  • Regulation Focus: Clear rules on course information, success rates, and faculty claims.
  • Transparency in Ads: All details must be honest and include disclaimers in readable fonts.
  • Protection for Students: Centers cannot use student success stories without consent.
  • Partnership with National Consumer Helpline: All centers must register with NCH for student complaints.
  • Penalties for Non-Compliance: Violations subject to Consumer Protection Act, 2019, and CCPA action.

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FAQs on Misleading Ads in Coaching Sector

What are CCPA’s new guidelines for the coaching sector?

The Central Consumer Protection Authority (CCPA) has introduced guidelines to prevent misleading ads in the coaching sector, focusing on transparency, truthful advertising, and accountability.

How do the guidelines affect coaching centers?

Coaching centers must ensure that advertisements are accurate and do not contain exaggerated claims. They must register with the National Consumer Helpline to address grievances.

Can coaching centers use students’ names and images in ads?

Coaching centers can only use students’ names or images if they obtain written consent after the student’s success.

What penalties apply for violating CCPA’s guidelines?

Violations of these guidelines are treated under the Consumer Protection Act, 2019, with penalties that can include fines and mandated removal of misleading ads.

What are the benefits of the guidelines for students?

The guidelines protect students by promoting transparency, restricting false success claims, and ensuring that coaching centers follow fair practices in advertisements.

Are endorsers responsible for claims made in coaching ads?

Yes, endorsers must verify the accuracy of claims they support. Misleading endorsements can lead to penalties for the endorser as well as the coaching center.

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