CCPA fines up to Rs 7 lakh on three UPSC coaching institutes for misleading ads

NEW DELHI: The Central Consumer Protection Authority (CCPA) has imposed penalties totalling Rs 15 lakh on three coaching institutes for making misleading advertisements about their success rates in civil services examinations, the government said on Thursday.

Vajirao & Reddy Institute and StudyIQ IAS were each fined Rs 700,000, while Edge IAS was penalised Rs 100,000 for deceptive claims regarding their results in the Union Public Service Commission (UPSC) Civil Services Examinations of 2022 and 2023, an official statement said.

The CCPA, led by Chief Commissioner Nidhi Khare, found that the institutes deliberately concealed that most of their successful candidates had only enrolled in Interview Guidance Programs, creating a misleading impression about the effectiveness of their other courses. Vajirao & Reddy Institute claimed "617 selections out of 933" in the 2022 examination, while StudyIQ IAS advertised "120+ selections" in 2023.

Investigations revealed that the majority of successful candidates at both institutes had only taken interview preparation courses. StudyIQ IAS was also unable to substantiate its "Success Pakka Offer" and "Selection Pakka Offer" promotions, failing to provide enrolment forms and fee receipts for its claimed successful candidates.

The institute advertised over 60 courses but did not disclose that its Interview Guidance Programme, which most successful candidates took, was not among the advertised offerings. The consumer protection body has issued 45 notices to various coaching institutes for misleading advertisements and has collected total penalties of Rs 71.6 lakh from 22 institutes to date.

Under the Consumer Protection Act, 2019, advertisements that deliberately conceal important information are classified as misleading and subject to penalties.