CCPA Fines Coaching Institutes for Misleading Ads, Ensures Transparency
CCPA penalises coaching institutes ₹61.6 lakh for misleading ads. New transparency guidelines and NCH initiatives empower consumers, including ₹1.15 crore student fee refunds
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The Central Consumer Protection Authority (CCPA) has imposed penalties totalling ₹61.6 lakh on 19 coaching institutes for issuing misleading advertisements. Additionally, notices have been sent to 45 other centres for similar violations, as per the Press Information Bureau.
Guidelines for Ad Transparency
On November 13, 2024, the CCPA introduced "Guidelines for Prevention of Misleading Advertisements in the Coaching Sector". These aim to curb false claims and ensure fair practices in promotional activities, fostering transparency in the sale of services. Minister of State for Consumer Affairs B.L. Verma shared this information in the Rajya Sabha.
Consumer Grievance Redressal Mechanisms
The National Consumer Helpline (NCH), operated by the Department of Consumer Affairs, acts as a central platform for addressing grievances at the pre-litigation stage. Complaints can be registered through multiple channels, including WhatsApp, SMS, mail, web portal, NCH app, and Umang app.
Through the NCH's 'Convergence' programme, 1,004 companies actively resolve grievances and provide feedback to complainants via a dedicated portal. Complaints against non-participating companies are forwarded for resolution.
In a special initiative addressing student complaints, particularly non-refunded enrolment fees, the NCH facilitated a ₹1.15 crore refund to affected aspirants, ensuring justice for those enrolled in UPSC Civil Services, IIT, and other entrance exams.
CCPA’s Role and Consumer Protection Laws
Established under the Consumer Protection Act, 2019, the CCPA is tasked with addressing consumer rights violations, unfair trade practices, and false advertisements. It aims to empower and protect consumers through modernised legislation tailored to the globalisation and digital economy.
The Consumer Protection Act, 2019, which replaced the 1986 Act, strengthens consumer rights in the face of technological advancements and e-commerce markets.
