IAS Coaching Institutes Face Penalties For Deceptive Ads

The IAS coaching institutes have received 20 notices from the Central Consumer Protection Authority (CCPA) for deceptive advertisements, of which 8 have resulted in penalties. The details were provided in a written response to the Lok Sabha by Ashwini Kumar Choubey, the union minister of state for consumer affairs. 

Guidelines notified by CCPA

The response also stated that the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, have been notified by the CCPA. These guidelines outline requirements for an advertisement to be legitimate and non-misleading, as well as specifics regarding bait and free claim advertisements and the responsibilities of advertisers, advertising agencies, manufacturers, and service providers.

According to the reply, the Consumer Protection Act of 2019 stipulated that the CCPA was established in July 2020 to regulate matters pertaining to consumer rights violations, unfair trade practices, and false or misleading advertisements that are prejudicial to the interests of the public and consumers as a class. On November 30, the CCPA issued Guidelines for Prevention and Regulation of Dark Patterns, 2023, listing 13 specified dark patterns.

"The Department of Consumer Affairs consistently strives to empower and protect consumers through the enactment of progressive laws." In an effort to update the laws governing consumer protection in the wake of the new globalization, technological advancements, e-commerce boom, etc. The response stated that the Consumer Protection Act of 2019 was passed and the Consumer Protection Act of 1986 was repealed.

What does it comprise?

Ads that: (i) falsely describe a product or service; (ii) give a false guarantee to consumers, or are likely to mislead them as to the nature, substance, quantity, or quality of such a product or service; (iii) convey an express or implied representation that, if made by the manufacturer, seller, or service provider thereof, would constitute an unfair trade practice; or (iv) purposefully conceal material information are all considered misleading advertisements in relation to any product or service under the Consumer Protection Act of 2019.