The Central Consumer Protection Authority (CCPA) has imposed penalties on two coaching institutes for misleading advertisements and unfair trade practices under the Consumer Protection Act, 2019.
In final orders, the CCPA fined Motion Education Pvt. Ltd. Rs 10 lakh and Career Line Coaching (CLC), Sikar, Rs 5 lakh, after finding that both institutes made exaggerated claims and failed to disclose key details about the courses taken by students featured in their advertisements.
The action was taken to safeguard consumer rights and ensure that no false or misleading advertisement is made regarding goods or services under the Act.
The CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, observed that both institutes prominently used names, photographs and achievements of IIT-JEE and NEET qualifiers while withholding information on the specific programmes in which those students were enrolled.
In the case of Motion Education Pvt. Ltd., the institute had claimed, extraordinary results of their students, the students colleges post exam, All India Rankings and more.
The CCPA took suo motu cognisance of these advertisements published across the institute’s website, YouTube channel, Instagram and newspapers. It found that while successful candidates were showcased, details of the paid programmes such as Full Time Classroom Programme, Residential Programme, Nurture Batch, Enthuse Batch, and Dropper/Leader Batch were not linked to the results being advertised.
An investigation by the Director General (Investigation) found that most students featured were enrolled in I-Eklavya (Online) courses, described as a rankers’ batch for JEE and NEET aspirants offered in online and offline formats, and provided free to selected students after a test and interview process. The advertisements, however, did not disclose this.
In the case of Career Line Coaching (CLC), Sikar, the institute had made claims including the AIR of its students, claimed student getting admitted to AIIMS, and claimed extraordinary results of the students.
The CCPA said it took suo motu cognisance of these advertisements published on the institute’s website and in newspapers. It found that the institute highlighted successful candidates while not disclosing the nature of courses undertaken by them.
The investigation found that several students featured were enrolled only in test series courses, a fact not disclosed in the advertisements. It also noted inconsistencies in the institute’s claims regarding ‘1650+ CLCians in MBBS, IIT & Others’, which were described at different stages as cumulative results since 1996 and as figures for 2024.
The authority said both institutes failed to provide documentary evidence of consent from students after declaration of results, as required under the Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024.
The CCPA directed both institutes to stop the misleading advertisements and ensure full disclosure in future communications. However, both institutes have challenged the orders before the National Consumer Disputes Redressal Commission (NCDRC).
The CCPA said misleading advertisements undermine the consumer’s right to be informed, particularly in the education sector where students invest significant time and resources. It added that concealment of course details, such as whether students were enrolled in classroom programmes, online courses or test series, amounts to a violation under the Act.
The authority has issued more than 60 notices to coaching institutes and imposed penalties of over Rs 1.39 crore on 31 institutes so far for misleading advertisements in competitive exam coaching.
