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New Rules To Check Misleading Ads By Coaching Centres

New Rules To Check Misleading Ads By Coaching Centres

The Centre has  released new guidelines on November 12, 2024.

About CCPA

  • The Central Consumer Protection Authority (CCPA) is a regulatory body. 
    • This body can investigate, refund, recall, and impose penalties. 
  • Established: Under the Consumer Protection Act, 2019.
  • Objective: It aims to protect consumer rights and ensure fair trade practices.

Overview of the CCPA guidelines

  • Issued by: Central Consumer Protection Authority (CCPA)
  • Purpose: To prevent misleading claims by coaching centres, following complaints on the National Consumer Helpline
  • Penalties so far: CCPA has issued 54 notices and imposed fines totaling Rs 54.60 lakh

Key Highlights of the CCPA Guidelines

  • Prohibition of False Claims:
    • False Selection and Job Guarantees: Institutes are barred from making false claims about:
      • Course offerings and durations
      • Faculty credentials
      • Fee structure and refund policies
      • Selection rates and exam rankings
      • Guaranteed job security or salary increases
    • Course Information: Misleading claims on course duration, faculty qualifications, fee structures, and refund policies are prohibited.
  • Definition of Coaching:
    • ‘Coaching’ includes academic support, education, guidance, study programs, and tuition.
    • Advertising Standards:
      • Covers all forms of advertising for academic support, guidance, and tuition.
      • Excludes non-academic activities like sports and creative pursuits.
    • Government’s Stance
      • Consumer Rights: Quality of advertisements should not undermine consumer rights.
  • Use of Success Testimonials:
    • Consent Required: Institutes must obtain written consent from successful candidates before using their names, photos, or testimonials.
    • Transparency: Must clearly display disclaimers and provide complete information on course offerings.
  • Accurate Representation:
    • Coaching centres must accurately present their resources, facilities, and course recognition, ensuring courses meet approval standards (e.g., AICTE, UGC).
    • Compliance Requirements
      • Course Recognition: Courses must be duly recognized and approved by a competent authority like AICTE, UGC, etc.
      • Penalties: Violations will attract penalties under the Consumer Protection Act.

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What Are Misleading Advertisements?

Misleading Ads

  • Misleading advertisements use incorrect or unclear information to deceive consumers. 
  • They may lead people to buy products or services based on false or exaggerated claims. 
  • These ads are considered unethical and often illegal because they violate consumer trust.
  • Key Features of Misleading Ads
    • False Claims: Statements that are simply untrue, like “100% success guaranteed” or “best product in the world.”
    • Exaggerated Benefits: Overstating the positive effects, such as a health product claiming it can cure diseases without evidence.
    • Missing Important Information: Leaving out essential details that could change a buyer’s decision, like hidden costs or limits on “free” offers.
    • Manipulated Testimonials: Using fake or selectively edited reviews that don’t reflect real customer experiences.
    • Fake Certifications: Displaying approval from recognized authorities that is either false or misleading.
    • Hidden Terms: Concealing conditions that might affect a consumer’s understanding, like eligibility criteria or time limits for special offers.

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