Central Consumer Protection Authority (CCPA) imposes penalty of ₹ 3 Lakh on coaching institute for advertising misleading claims of IIT- JEE results

Newdelhi:14/2/25:The Central Consumer Protection Authority (CCPA) has imposed penalty of ₹ 3 lakh on IITian’s Prashikshan Kendra Pvt. Ltd. (IITPK) for advertising misleading claims regarding the result of IIT- JEE examination. The decision was taken to ensure that no false or misleading advertisement is made of any goods or services that contravenes the provisions of the Consumer Protection Act, 2019.

CCPA has so far issued 46 notices to various coaching institutes for misleading advertisements. The CCPA has imposed penalty of 77 lakhs 60 thousand on 24 coaching institutes and directed them to discontinue the misleading advertisements.

Given the violation of the Consumer Protection Act, 2019, the CCPA, headed by Chief Commissioner, Smt. Nidhi Khare, and Commissioner, Shri Anupam Mishra have issued an Order against IITian’s Prashikshan Kendra Pvt. Ltd. (IITPK).

False impression of national level toppers: The institute’s advertisements prominently featured titles such as “IIT Topper” and “NEET Topper” alongside the bold numbers ‘1’ and ‘2’ in front of candidate names and pictures. This misrepresentation was designed to create the deceptive impression that these students had secured All India Rank in their respective examinations. The institute deliberately concealed that students were merely toppers within the institute, not at the national level. This misrepresentation can significantly influence the decisions of students who are the target audience (primarily students of classes 7th to 12th, aged 14-17). They are likely to assume that the institute consistently produces top national performers, thus influencing their choice of coaching institute under pretenses.

Misleading claims of IIT ranks: The institute claimed, “1384 IIT Ranks in the past 21 years by IITPK,” suggesting that 1384 students coached by the institute secured admission into the prestigious Indian Institutes of Technology (IITs). Deceptive Implications: The advertisement did not clarify that not all 1384 students were selected for IITs. By using the phrase “IIT Ranks,” the institute misled consumers into believing that these students exclusively secured admission into IITs, thereby exaggerating its success rate. Upon investigation, the CCPA (Central Consumer Protection Authority) found that the list provided by the institute included students admitted to a variety of institutions, including IITs, IIITs, NITs, BITS, Manipal University, VIT Vellore, PICT Pune, MIT Pune, VIT Pune, and other educational institutions.

Misleading success ratio claims: Inflated and Unqualified Statements: The institute used bold claims such as “Highest success ratio year after year,” “Best success ratio for 21 years,” and “Success Ratio at 61%” in its advertisements. These statements were presented without any supporting data or context, leading consumers to believe that 61% of the institute’s students secure admission into IITs. The institute did not provide any comparative analysis or third-party verification to substantiate these claims.  During hearings, the institute submitted that the term “Success Ratio” was clarified during webinars and one-on-one counseling sessions. However, the primary platform for these claims was the advertisements themselves, where no such clarification was provided. This strategy misleads potential students and parents by not presenting crucial information upfront.

The CCPA found that the institute deliberately concealed important information that would have helped students make an informed decision when choosing a course or coaching institute/platform. Therefore, CCPA deemed it necessary to impose a penalty in the interest of impressionable students and address false or misleading advertisements and unfair trade practices.

(Final Order is available on the Central Consumer Protection Authority website https://doca.gov.in/ccpa/orders-advisories.php?page_no=1)