CCPA Penalizes Coaching Institute for Misleading Ads

The Central Consumer Protection Authority (CCPA) fined coaching institute Maluka IAS Rs 3 lakh for misleading ads. Maluka IAS claimed high UPSC success rates but did not disclose only two students paid for courses. The ads violated the Consumer Protection Act 2019, prompting the CCPA to demand cessation of these ads.

The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 3 lakh on coaching institute Maluka IAS for making misleading advertisements, the government body said on Friday. The CCPA found that Maluka IAS concealed important information about the courses taken by students it claimed had cleared the prestigious Indian Civil Services exams in its advertisements. The institute's ads claimed ''120+ selections in UPSC CSE 2022'' and ''Guaranteed Prelims & Mains'', but did not disclose that only two of the 136 successful candidates had taken paid courses, while the remaining 134 students had enrolled in a free interview guidance programme, an official statement said. The consumer regulator said the advertisements violated provisions of the Consumer Protection Act of 2019 related to misleading advertisements by ''deliberately concealing important information''. In its order, the CCPA said the claim of ''Guaranteed Prelims & Mains'' misled consumers about the nature and quality of Maluka IAS' services, creating an impression that any student enrolling would be assured of clearing the preliminary and main examinations. The lack of proper disclosure about successful students' course details deprived consumers of making an informed choice while selecting coaching institutes, the CCPA said, asking Maluka IAS to discontinue the misleading ads.