New Delhi: Central Consumer Protection Authority (CCPA) imposed penalties on two coaching institutes for misleading advertisements and unfair trade practices under the Consumer Protection Act, 2019. The authority fined Motion Education Pvt. Ltd. Rs 10 lakh and Career Line Coaching (CLC), Sikar, Rs 5 lakh.
The CCPA said the institutes used names, photographs, and achievements of successful IIT-JEE and NEET candidates without fully disclosing the actual courses chosen by those students. Officials stated that the advertisements created a false impression regarding the role of the institutes in the students’ success.
The authority observed that Motion Education promoted claims related to JEE and NEET results across its website, YouTube channel, Instagram account, and newspaper advertisements. The institute advertised paid classroom and residential programmes while many featured students had actually enrolled in “I-Eklavya” courses.
Investigators found that the “I-Eklavya” programme functioned as a free premier rankers’ batch selected through tests and interviews. However, the institute failed to disclose this information in its advertisements. The CCPA also found that some students joined the institute only after examinations concluded, yet their achievements were used for promotional purposes.
Misleading advertisements trigger wider crackdown on coaching sector
The CCPA also acted against Career Line Coaching in Sikar for promotional claims related to NEET and IIT results. The authority found that several featured students had enrolled only for test series courses. However, the advertisements did not mention this fact.
Investigators also observed contradictions in the institute’s claim of “1650+ CLCians in MBBS, IIT & Others”. In written submissions, the institute stated that the figure represented cumulative selections since 1996. During hearings, it claimed the number referred only to the year 2024.
The authority stated that both institutes failed to provide documentary proof showing they obtained written consent from successful candidates after declaration of results. Such consent is mandatory under the Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024.
The CCPA directed both institutes to discontinue the advertisements immediately and avoid publishing misleading claims in future. The coaching centres later challenged the orders before the National Consumer Disputes Redressal Commission.
The authority stated that misleading claims violate consumers’ right to receive accurate information before making decisions. Officials said students and parents often invest significant money and time based on such advertisements.
So far, the CCPA has issued more than 60 notices to coaching institutes across the country. The authority has imposed penalties exceeding Rs 1.39 crore on 31 institutes involved in unfair trade practices linked to competitive examination coaching.
