Consumer rights regulator CCPA imposes Rs 3 lakh fine on Sriram's IAS for misleading ad

Consumer rights regulator CCPA has imposed a Rs 3 lakh penalty on coaching institute Sriram's IAS for publishing misleading advertisement and violating consumer rights.

The misleading advertisement was related to its claims regarding UPSC Civil Service Exam 2022.

According to an official statement, the Central Consumer Protection Authority (CCPA) has imposed a "penalty of Rs 3 lakh for misleading advertisement on Sriram's IAS".

The decision was taken to protect and promote the rights of consumers as a class, the CCPA said.

It was also to ensure that no false or misleading advertisement is made of any goods or services that contravene the provisions of the Consumer Protection Act, 2019.

In view of the violation of the Consumer Protection Act, 2019, the CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, has issued an order against Sriram's IAS for misleading advertisement regarding UPSC Civil Service Exam 2022.

The regulator pointed out that coaching institutes and online edtech platforms use pictures and names of same successful candidates to influence prospective aspirants (consumers), without disclosing the courses opted by such candidates and length of the course so attended.

Sriram's IAS in its advertisement made claims of '200 plus selections in UPSC Civil Service Exam 2022'; 'We are India's No.1 Prestigious UPSC/IAS Coaching Institute', the regulator said quoting from the ad content.

CCPA found out that Sriram's IAS advertised various types of courses but the information with respect to the course opted by the advertised successful candidates in the UPSC Civil Service exams results was deliberately concealed in the advertisement.

"This has the effect of consumers falsely believing that all the successful candidates so claimed by the institute had opted for the paid courses advertised by the institute on its website," the CCPA said.

Sriram's IAS in its response submitted the details of only 171 successful candidates against its claim of 200 plus selections in UPSC CSE 2022, the statement said.

Out of these 171 candidates, 102 were from Free Interview Guidance Programme (IGP), 55 were from Free Test Series, 9 were from GS Classroom course and 5 candidates were from different states under the MoU signed between the state government and the institute to provide free coaching.

"This fact was not disclosed in their advertisement, thereby deceiving consumers," the regulator asserted.

The CCPA said that majority of candidates had already cleared Preliminary and Mains examination by himself/herself, with no contribution of Sriram's IAS.

"By concealing this important fact, such false & misleading advertisement creates huge impact on those consumers who are UPSC aspirants without letting them know that Sriram's IAS had offered guidance to only such successful candidates who had already cleared Preliminary and Mains examination of UPSC examination," it said.

Hence, the CCPA found out that the advertisement has "violated" the consumer's right to be informed so as to protect himself against unfair trade practice.

Khare emphasised that an advertisement should contain truthful and honest representation of facts.

Important information should be disclosed in such a manner that they are clear, prominent and extremely hard to miss for consumers, she said.

Khare highlighted the importance of consumer rights and the obligation of advertisers to provide accurate information to consumers.