New Delhi, August 18 2024 : The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 3 lakh on Sriram’s IAS, a prominent UPSC coaching institute, for disseminating a misleading advertisement regarding the results of the UPSC Civil Services Examination 2022. The CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, found that the institute had violated the Consumer Protection Act, 2019 by making deceptive claims in its promotional materials. According to a statement released by the CCPA on Sunday, Sriram’s IAS had advertised that it achieved “200 plus selections in UPSC Civil Service Exam 2022” and claimed to be “India’s No.1 Prestigious UPSC/IAS Coaching Institute.” However, an investigation revealed that the advertisement intentionally omitted important details about the courses chosen by the successful candidates it cited. Section 2(28)(iv) of the Consumer Protection Act defines a misleading advertisement as one that deliberately withholds important information. In this case, the CCPA determined that Sriram’s IAS did not disclose which specific courses the successful candidates had enrolled in, leading consumers to falsely believe that all of the successful candidates had completed the paid courses promoted by the institute.
In its defense, Sriram’s IAS submitted details of 171 successful candidates, rather than the 200-plus as claimed in the advertisement. Of these 171 candidates, 102 were enrolled in the Free Interview Guidance Programme (IGP), 55 participated in the Free Test Series, 9 were part of the GS Classroom course, and 5 were from different states under a Memorandum of Understanding (MoU) between the state governments and the institute to provide free coaching. This significant detail was not disclosed in the advertisement, which the CCPA concluded was an attempt to deceive consumers. The CCPA emphasized that the majority of these candidates had already cleared the Preliminary and Mains exams independently, without substantial input from Sriram’s IAS. The institute primarily provided guidance during the Personality Test (PT) stage, which accounts for only 13.5% of the total marks in the Civil Services Examination. By failing to disclose this critical fact, the advertisement misled potential UPSC aspirants about the extent of the institute’s contribution to the candidates’ success.
The CCPA ruled that the misleading advertisement violated the consumer’s right to be informed and protected against unfair trade practices. Consequently, the CCPA imposed a Rs 3 lakh fine on Sriram’s IAS, sending a clear message to educational institutions and edtech platforms about the importance of transparency in their marketing practices.
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