the Central Consumer Protection Authority (CCPA) has issued the ‘Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024’ on 13th November 2024 to address the issue of misleading advertisements in the coaching sector.
These guidelines are drafted in the wake of growing concerns about false/misleading claims, exaggerated success rates, and unfair contracts that coaching institutes often impose on students, influencing their decisions by concealing important information, giving false guarantee etc.
The guidelines will apply to every person engaged in coaching including any endorsers or public figures promoting their services through advertisements. As per the new guidelines, endorsers, who lend their name or reputation to coaching centers, will now be responsible for ensuring that the claims they endorse are accurate and truthful.
Some of the Key Highlights of the Guidelines:
Regulation of Advertisements: The guidelines explicitly prohibit coaching institutes from making false claims related to:
– The courses offered, their duration, faculty qualifications, fees, and refund policies.
– Selection rates, success stories, exam rankings, and job security promises.
– Assured admissions, high exam scores, guaranteed selections or promotions.
Truthful Representation: Misleading representations about the quality or standard of their services including infrastructure, resources, and facilities, are strictly prohibited.
Students’ Success Stories: Coaching centers must not use students’ names, photos, or testimonials in advertisements without their written consent – and importantly, this consent must be obtained only after the student’s success.
Transparency and Disclosure: Coaching centers will need to disclose important information, such as the name, rank, and course details alongside the student’s photo in an advertisement. Whether the course was paid for by the student that too must be clearly stated. Additionally, any disclaimers will need to be prominently displayed, with the same font size as other important details, ensuring that consumers are not misled by fine print.
No Creation of False Urgency: The guidelines will reportedly target the common tactic used by any person engaged in coaching i.e. creating a false sense of urgency or scarcity, such as implying limited seats or exaggerated demand, to pressure students into making immediate decision.
Convergence with National Consumer Helpline: Every coaching center will be required to partner with the National Consumer Helpline, making it easier for students to raise concerns or complaints regarding misleading advertisements and unfair trade practices.
Fair Contracts: The guidelines are also said to address the issue of unfair contracts that students are often enter into with coaching centers. This provision is intended to eliminate the pressure that many students face when enrolling in coaching
Enforcement and Penalties: Any violation of these guidelines will be treated as a contravention of the Consumer Protection Act, 2019. The Central Authority has the power to take stringent actions against offenders, including imposing penalties, ensuring accountability, and preventing further occurrences of such deceptive practices.
