Context
∙ The Government is discussing the guidelines to regulate the misleading
∙ The Central Consumer Protection Authority (CCPA) conducted the first meeting of the Committee constituted to prepare Guidelines.
∙ Need: Recently, CCPA has issued notices to 31 coaching institutes for misleading advertisement and imposed fine on 9 of them for misleading advertisement.
Guidelines
∙ Applicability: The Guidelines shall be applicable to all the coaching institutes whether online or physical and cover all forms of advertisement regardless of form, format or medium.
∙ Defining Misleading Advertisement: It is defined under the Consumer Protection Act 2019 which inter-alia include concealing important information related to the course opted by the successful candidates.
∙ Coaching institutes shall not make false claims regarding success rates or number of selections and any other practices that may lead to consumer misunderstanding or subvert consumer autonomy and choice.
∙ DO’s and DON’Ts before coming up with advertisements:-
∙ Coaching Institute shall mention requisite information with successful candidate photo – Rank secured by successful candidate, course opted by successful candidate, duration of course, whether it is paid or free.
∙ Coaching institutes shall not claim 100% selection or 100% job guaranteed or guaranteed preliminary or mains.
∙ The font of disclaimer or important information in the advertisement shall be the same as that used in the claim/advertisement. The placement of such information shall be at a prominent and visible place in the advertisement.
∙ Penalty for misleading advertisement by the coaching sector will be governed as per Consumer Protection Act, 2019.
The Central Consumer Protection Authority (CCPA)
∙ CCPA was established in 2020 under the provisions of the Consumer Protection Act, 2019.
∙ The primary mandate of the CCPA is to promote, protect, and enforce the rights of consumers. It aims to ensure fair trade practices and protect consumers from unfair business practices.
∙ Enforcement of Consumer Rights: The CCPA has the authority to investigate, inquire into, and take appropriate action against unfair trade practices, misleading advertisements, and violations of consumer rights.
∙ Penalties and Compensation: The authority can impose penalties on businesses or individuals found guilty of unfair trade practices.
