Consumer protection authority imposes Rs 5 lakh fine against coaching institute for misleading ad on UPSC result

The Central Consumer Protection Authority (CCPA) has issued a penalty of Rs 5 lakh against Shankar IAS Academy for misleading advertisements regarding the UPSC exam 2022.

According to the PIB, Shankar IAS Academy in its advertisement claimed that of the 933 candidates, 336 got selected at All India Level. The claim also mentioned that 40 candidates bagged the rank in the Top 100. “42 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy,” one of the claims read. In the misleading advertisement, the civil service coaching institute said that it was the, “Best IAS Academy in India”.

The government watchdog agency said that Shankar IAS Academy advertised various types of courses but the information with respect to the course opted by the advertised successful candidates was deliberately concealed in the advertisement.

Therefore, the consumers falsely believe that all the successful candidates opted for the paid courses advertised by the institute on its website, the CCPA said.

However, Shankar IAS Academy in its response submitted the details of only 333 successful candidates against its claims of 336 plus selections in the UPSC exam 2022.

Notably, out of 336 claimed students, 221 took the free Interview Guidance Programme, 71 took the main test series, 35 took the prelims test series, 12 took general studies prelims cum mains, 4 took the prelims test series with some other main courses.

The CCPA said all such details were not disclosed by the academy in its advertisement, resulting in deceiving consumers.

“By concealing this important fact and misleading advertisement creates a huge impact on those consumers who are UPSC aspirants”. CCPA added, "The advertisement has violated the consumer’s right to be informed to protect itself against unfair trade practice".

Coaching institutes bombard newspapers etc. with advertisements soon after the announcement of the UPSC Civil Service examination results. These advertisements prominently feature the names and photographs of successful candidates. The CCPA has issued Notices to numerous coaching institutes for misleading advertisements wherein the CCPA observed that coaching institutes prominently use names and pictures of the same successful candidate in their advertisements to create deception as if the successful candidates were full-time classroom students of coaching institutes. After examination of various coaching institutes' submissions, CCPA found out that the majority of successful candidates had only participated in interview guidance programs or the free-of-cost programmes offered by coaching institutes.

Section 18 of the Act empowers CCPA that it shall ensure that no false or misleading advertisement is made in respect of any goods or services which contravenes the provisions of this Act or the rules or regulations made thereunder.