Coaching Class: Consumer Protection Authority Issues Guidelines To Protect Students from False Claims
Moneylife Digital Team 14 November 2024
The central consumer protection authority (CCPA) has issued guidelines that all coaching institutes must disclose relevant information regarding their students and courses to prevent parents and candidates from being misled. Nidhi Khare, chief commissioner of CCPA and secretary in the department of consumer affairs issued a set of guidelines against the misleading advertisement used by various coaching institutes.
  
The 'guidelines for prevention of misleading advertisement in coaching sector, 2024' aim to safeguard students and the public from deceptive marketing practices often used by coaching institutes. 
  
The guidelines define coaching as academic support, including education, guidance, instructions and tuition, while excluding counselling and creative activities like sports and dance. A coaching centre is defined as any institution providing coaching to more than 50 students. Additionally, endorsers who promote coaching services through advertisements will now be held accountable for the truthfulness of the claims they endorse.
  
The guidelines are introduced in response to the growing concerns over misleading claims, exaggerated success rates, and unfair contracts imposed by coaching institutes on students. These deceptive practices have been found to mislead students, often concealing important information or offering false guarantees, the CCPA says in a release.
  
Key Highlights of the Guidelines
Regulation of Advertisements: Coaching institutes are prohibited from making false claims related to course offerings, faculty qualifications, success rates, job security promises, and other services.
 
Truthful Representation: Coaching centres must accurately represent their infrastructure, resources, and facilities without misleading students about the quality of services provided.
 
Students' Success Stories: The use of students' names, photos, or testimonials in advertisements will require their written consent which must be obtained only after their success.
 
Transparency and Disclosure: Coaching institutes must disclose details such as the name, rank, course details and payment information alongside student photos in advertisements. Disclaimers must be displayed clearly and in the same font size as other important information.
 
No Creation of False Urgency: The guidelines prohibit creating a false sense of urgency or exaggerated demand which is often used to pressure students into making quick decisions.
 
Convergence with National Consumer Helpline: Coaching centres are required to cooperate with the National Consumer Helpline, enabling students to report misleading advertisements and unfair practices.
 
Fair Contracts: Coaching institutes will no longer be able to use successful candidates' photographs, names, or testimonials without post-selection consent.
 
Enforcement and Penalties: Violations of these guidelines will be treated as a contravention of the Consumer Protection Act, 2019, and offenders will face penalties to ensure accountability and prevent deceptive practices.
 
"The new regulations are expected to bring greater protection to students and promote a more accountable and ethical coaching environment," Ms Khare says.
   
Taking suo motu action against misleading advertisements by coaching centres, CCPA issued 45 notices to various coaching institutes for deceptive marketing practices. The Authority has also imposed a penalty of Rs54.6 lakh on 18 coaching institutes and ordered them to cease the misleading advertisements.
  
The department of consumer affairs, through the National Consumer Helpline (NCH), also successfully intervened at the pre-litigation stage to ensure justice for students enrolling in UPSC Civil Services, IIT and other entrance examinations. 
 
The number of grievances registered by students has seen a significant rise, with 4,815 complaints in FY21-22, 5,351 in FY22-23, and 16,276 in FY23-24. "This increase reflects growing student confidence in the NCH as an effective grievance redressal mechanism before escalating matters to Consumer Commissions. As of 2024, 6,980 students have already reached out to NCH for swift resolution of their issues," the Authority says.
Comments
iaminprabhu
8 months ago
DECEPTIVE & FALSE MARKETING is huge & uncontrolled in this Coaching Classes, Industry!

Accountability & ETHICS will help, besides thise who feel CHEATED (Students & Parents) will have a forum to complain & get due justice!
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