Centre takes aim at misleading coaching centre ads with new regulations

The Indian government has introduced stringent guidelines to regulate advertising practices in the coaching sector, targeting institutes that make unrealistic promises about student success rates and job placements.

The Central Consumer Protection Authority (CCPA) unveiled the comprehensive framework on Wednesday, November 13, 2024, responding to mounting complaints registered through the National Consumer Helpline. The regulatory body has already taken action against various coaching centres, issuing 54 notices and imposing penalties totalling Rs 54.6 lakh.

Under the new guidelines, titled 'Prevention of Misleading Advertisement in Coaching Sector', institutes are expressly forbidden from making false claims about their courses, faculty qualifications, fee structures, and guaranteed outcomes. The regulations specifically prohibit advertisements promising 100% selection rates or assured job security.

The guidelines establish a clear definition of 'coaching', encompassing academic support, education, guidance, study programmes, and tuition services, whilst explicitly excluding counselling, sports, and creative activities.

A significant provision requires coaching centres to obtain written consent before using success stories, photographs or testimonials of candidates who have cleared competitive examinations. The CCPA Chief highlighted that many successful candidates, particularly in prestigious examinations like the UPSC, often clear preliminary and main examinations through self-study, seeking only interview guidance from coaching institutes.

"We are not against coaching centres," Consumer Affairs secretary Nidhi Khare told reporters. "However, the quality of advertisements must not compromise consumer rights." The guidelines mandate that institutes must accurately represent their services, facilities, resources and infrastructure. Additionally, they must clearly disclose whether their courses have received recognition from competent authorities such as AICTE or UGC.

The new framework supplements existing consumer protection legislation, with violations subject to penalties under the Consumer Protection Act. Institutes must now prominently display disclaimers and provide transparent information about their courses and services.

These regulations mark a significant step towards protecting students and their families from misleading marketing practices in India's burgeoning coaching industry, estimated to be worth billions of rupees annually.