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

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 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.