CCPA Fines Coaching Institutes Over Misleading IIT-JEE, NEET Ads

Central Consumer Protection Authority (CCPA) has imposed penalties on two coaching institutes for allegedly publishing misleading advertisements and engaging in unfair trade practices under the Consumer Protection Act, 2019.

In separate final orders, the authority fined Motion Education Pvt. Ltd. ₹10 lakh and Career Line Coaching (CLC), Sikar, ₹5 lakh after finding that both institutions made exaggerated claims regarding student achievements while failing to disclose important details about the programmes attended by those students.

According to the authority, the action was taken to safeguard consumer rights and prevent misleading promotional practices in the education sector.

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Coaching Ads Face Action:

The CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, observed that both coaching institutes prominently used photographs, names and ranks of IIT-JEE and NEET qualifiers in advertisements without clearly specifying the nature of the courses taken by those students.

In the case of Motion Education, the authority examined advertisements published on the institute’s website, YouTube channel, Instagram page and newspapers, where the company highlighted exceptional student results, college admissions and All India Rankings.

The investigation found that while successful students were heavily promoted, the institute did not adequately disclose whether those candidates were enrolled in paid classroom programmes, residential batches, dropper courses or online rankers’ batches.

According to the Director General (Investigation), several students featured in the advertisements were enrolled in “I-Eklavya” online rankers’ programmes, which were reportedly offered free of cost to selected students after tests and interviews.

The authority said these details were not disclosed in the advertisements.

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Misleading Claims Under Fire:

Similarly, in the case of Career Line Coaching (CLC), Sikar, the institute was found promoting claims related to All India Ranks, admissions into AIIMS and exceptional examination results without fully clarifying the nature of the programmes attended by the featured students.

The investigation reportedly found that some students highlighted in the advertisements had only enrolled for test series programmes rather than full coaching courses.

The CCPA also noted inconsistencies in the institute’s claim of “1650+ CLCians in MBBS, IIT & Others”, observing that the figure was described differently at separate stages as both cumulative results since 1996 and achievements specifically linked to 2024.

The authority further stated that both institutes failed to provide documentary proof confirming student consent after results were declared, as required under the Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024.

The CCPA directed both institutes to discontinue misleading advertisements and ensure complete disclosure in future communications.

However, both institutes have challenged the orders before the National Consumer Disputes Redressal Commission (NCDRC).

According to the authority, misleading advertisements in the coaching sector undermine students’ right to accurate information, especially in a highly competitive education environment where families invest significant time, money and expectations.

The CCPA added that concealing whether students attended classroom coaching, online batches or only test series courses amounts to a violation under the Consumer Protection Act.

The regulator said it has so far issued more than 60 notices to coaching institutes and imposed penalties exceeding ₹1.39 crore on 31 institutes over misleading advertisements linked to competitive examination coaching.