CCPA Fines Narayana Educational Institutions ₹8 Lakh Over Misleading JEE Advanced Advertisements

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹8 lakh on Narayana Educational Institutions for publishing misleading advertisements about the students’ performance in JEE Advanced 2024 examination.

The order was passed by a Bench of Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra in a suo motu proceeding initiated by the authority, according to a report by Bar & Bench.

The CCPA investigated advertisements on Narayana’s website, social media and in print publications including the The Times of India, which highlighted top ranks achieved by students in the highly competitive engineering entrance exam.

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Misleading Claims:

The authority examined the advertisements and found them to be misleading as they did not mention material information about the courses pursued by the students shown in them.

“The advertisement is false and misleading inasmuch as it deliberately conceals important information regarding the courses opted for by the successful candidates... thereby misleads prospective consumers regarding the nature, scope and quality of the Institute’s services,” the authority observed.

The ads prominently displayed the names, photographs and ranks of successful candidates, but did not clearly specify whether the students were enrolled in regular classroom coaching programmes, distance learning courses or short-term offerings, the order said.

The regulator said the advertisements created an impression that all the rank holders shown in advertisements are full-time students of the institution without distinguishing between categories of enrolment.

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Transparency Concerns:

The CCPA also expressed concerns about the use of terms like “AIR 1” without adequate context, noting that the claims were not well explained and could mislead consumers about the category or classification of the ranks being endorsed.

The authority said, “The claim that course details could not be disclosed due to ‘space constraints’ is not sustainable, refuting the institution’s argument that detailed disclosures could not be included because of space limitations. “This selective allocation of advertising space is a sign of a deliberate omission.”

The regulator said it saw similar issues with disclosures in digital ads, where space is not a limitation, and highlighted that some disclosures were in font sizes too small for consumers to easily view.

Highlighting the broader impact of such advertisements, the CCPA said claims related to competitive examination results have the potential to influence lakhs of students and parents, making transparency and accuracy critical.

“In view of the wide reach and impact of the impugned advertisements… imposition of a penalty is necessary in the interest of consumers,” the authority said.