The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 5 lakh on Shankar IAS Academy for misleading advertisements regarding the UPSC Civil Service Exam 2022. The CCPA found that the academy deliberately concealed information regarding the courses opted by the advertised successful candidates, creating a misleading impression that all candidates had taken paid courses offered by the institute. This action, taken under the Consumer Protection Act, 2019, is a significant step in safeguarding the rights of consumers against deceptive marketing practices.

Shankar IAS Academy’s Misleading Advertisements

Shankar IAS Academy’s advertisements made several claims, including:

• “336 selections out of 933 at All India Level”
• “40 candidates in Top 100”
• “42 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy”
• “Best IAS Academy in India”

However, the CCPA’s investigation revealed that these claims were misleading because Shankar IAS Academy deliberately concealed crucial information about the courses taken by these “successful” candidates.

Hidden Truths: Deliberate Concealment of Course Details

The investigation revealed that while Shankar IAS Academy boasted of a large number of successful candidates, many of these candidates had actually availed free or low-cost courses such as free interview guidance, test series, and prelims courses. The academy intentionally omitted this information from their advertisements, creating a deceptive impression that all successful candidates had opted for the paid courses offered by the institute.

For instance, out of the 336 claimed selections, 221 candidates took the free Interview Guidance Programme, 71 took the Mains Test Series, 35 took the Prelims Test Series, and only a small number opted for the paid courses advertised. This fact was not disclosed in their advertisement, thereby misleading consumers into believing that all the successful candidates had opted for the advertised paid courses.

Exploitation of Aspirations

Shankar IAS Academy’s deceptive advertisement practices targeted UPSC aspirants, a vulnerable group seeking guidance and support for their academic journey. By concealing crucial information about the courses taken by the advertised candidates, the academy misled consumers, creating a false perception about their role in student success.

This practice is particularly unethical and damaging as it exploits the ambitions and hopes of UPSC aspirants, who are already under immense pressure to achieve success in this highly competitive exam. It is crucial to protect consumers from such deceptive advertising practices, especially in sensitive sectors like education and coaching.

The CCPA’s Action: Protecting Consumer Rights

The CCPA’s action against Shankar IAS Academy signifies a strong stance against misleading advertising practices in the coaching industry. The penalty of Rs 5 lakh reflects the seriousness of the offense and serves as a deterrent for other coaching institutes considering similar unethical practices.

Importance of Transparency in Advertising

The CCPA emphasized the crucial role of transparency in advertising, especially for products and services catering to education and professional goals. By concealing important information like the courses opted by advertised successful candidates, Shankar IAS Academy violated the consumer’s right to be informed and make an informed choice while choosing a coaching institute.

The CCPA rightly highlighted that the advertisement contained information in a way that was unclear and hard to miss for consumers. This manipulation of information, intended to mislead and deceive consumers, falls under the purview of deceptive advertising practices, as outlined in the Consumer Protection Act, 2019.

The Need for Stricter Regulations and Consumer Awareness

The CCPA’s action against Shankar IAS Academy underscores the need for stricter regulations and increased consumer awareness to combat misleading advertising practices in the education sector. The coaching industry has witnessed a surge in recent years, and many institutions employ unethical advertising tactics to attract students.

Raising Consumer Awareness

It is essential to empower consumers to recognize and report such deceptive practices. This can be achieved through:

• Educational campaigns and awareness programs designed to educate consumers about their rights and how to identify misleading advertisements.
• Online resources and platforms providing comprehensive information on the courses offered by coaching institutions and consumer protection guidelines.
• Increased transparency and accountability among coaching institutions, ensuring they adhere to ethical and responsible advertising practices.

Take Away Points

The CCPA’s action against Shankar IAS Academy serves as a significant reminder that misleading advertising is not tolerated. This case emphasizes the following crucial points:

• Transparency in Advertising: It is essential for coaching institutions to provide accurate and transparent information about their courses, student outcomes, and teaching methods. This empowers consumers to make informed choices based on authentic data.
• Consumer Protection is Paramount: Consumers deserve protection against misleading advertisements and unethical business practices. The CCPA’s role in upholding consumer rights and ensuring fair market practices is vital.
• Ethical Practices in Education: The education sector requires a strong ethical framework. All coaching institutions must prioritize ethical business practices, including transparent and honest advertising, to ensure a fair and competitive environment.

This case serves as a warning to coaching institutes that engage in unethical advertising tactics. By proactively ensuring transparent and truthful advertising practices, they can contribute to building trust and fostering a positive learning environment for students.