The Central Consumer Protection Authority (CCPA) has fined Sriram’s IAS, a prominent coaching institute, Rs 3 lakh for disseminating a misleading advertisement related to the Union Public Service Commission (UPSC) Civil Service Exam 2022. The penalty aims to safeguard consumer rights and ensure transparency in advertisements, aligning with the provisions of the Consumer Protection Act, 2019.
The CCPA, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, found Sriram’s IAS guilty of concealing critical information in its advertisements. The institute had claimed “200 plus selections in UPSC Civil Service Exam 2022” and touted itself as “India’s No.1 Prestigious UPSC/IAS Coaching Institute.” However, the authority determined that the advertisement did not disclose the specific courses that the successful candidates had enrolled in, misleading potential consumers into believing that all 200+ successful candidates had benefited from the institute’s paid courses.
The investigation revealed that of the 171 candidates submitted by Sriram’s IAS in response to the inquiry, 102 were from a Free Interview Guidance Programme (IGP), 55 were from a Free Test Series, 9 had attended a GS Classroom course, and 5 were from different states under a government-sponsored free coaching program. Crucially, many of these candidates had already cleared the Preliminary and Mains stages of the UPSC exam independently, with the institute’s contribution limited to the Personality Test, which constitutes only 13.5% of the total marks.
The CCPA emphasized that this omission violated Section 2(28)(iv) of the Consumer Protection Act, which classifies advertisements as misleading if they deliberately conceal important information. By not disclosing the nature of the courses attended by the successful candidates, Sriram’s IAS misled consumers, particularly UPSC aspirants, regarding the efficacy of its coaching programs.
Chief Commissioner Nidhi Khare underscored the importance of truthful and transparent advertisements, stressing that all relevant information must be presented clearly and prominently to enable consumers to make informed decisions. She reiterated that misleading advertisements not only violate consumer rights but also contribute to unfair trade practices.
The fine imposed on Sriram’s IAS serves as a stern reminder to educational institutions and other service providers about the importance of maintaining integrity and transparency in their promotional activities.