Prevention of Misleading Ads in Coaching Sector (Draft Guidelines)

Draft Guidelines to prevent false claims regarding success rates, number of selections etc. by every person engaged in coaching

16 FEB 2024

Powers conferred by section 18 of the Consumer Protection Act, 2019

The Central Consumer Protection Authority has sought public comments on Draft Guidelines for Prevention of Misleading Advertisement in Coaching Sector. Draft Guidelines are placed on the website of the Department of Consumer Affairs and are accessible through the link

Public comments/suggestions/feedback are solicited and may be provided to the Central Authority within 30 days (until 16^th March 2024).

The Central Consumer Protection Authority (CCPA) conducted a stakeholder’s consultation on Misleading Advertisement in Coaching Sector on 08^th January 2024, which was attended by Department of Personnel & Training (DoPT), Ministry of Education, Lal Bahadur Shastri National Academy of Administration (LBSNAA), National Law University (NLU) Delhi, FIITJEE, Khan Global Studies and Ikigai Law. In the meeting, there was a general consensus that Central Consumer Protection Authority should come with Guidelines for prevention of misleading advertisement in coaching sector.

The draft Guidelines for Prevention of Misleading Advertisement in Coaching Sector have been framed after detailed deliberations with all stakeholders including coaching institutes, law firms, Government and Voluntary Consumer Organizations (VCO’s) and are now being put up for public consultation. Proposed Guidelines shall be issued under section 18 (2) (l) of the Consumer Protection Act 2019.

The draft guidelines define “Coaching” as tuition, instructions or academic support or learning programme or guidance provided by any person. Under the Guidelines, conditions for misleading advertisement have been laid out. Any person who engage in coaching shall be considered to be engage in a misleading advertisement if it employs any of the following practices –

1. Conceal important information related to name of the course (whether free or paid) & duration of course opted by successful candidate or any other important information which can influence a consumer’s decision to choose their services.
2. Make false claims regarding success rates, number of selections, or rankings of students in any competitive exam without providing verifiable evidence.
3. Falsely represent that students’ success is solely attributable to the coaching, without acknowledging the individual efforts of the students. Clearly state the extent of the coaching involvement in their success.
4. Create false sense of urgency or fear of missing out that may heighten anxieties amongst students, or parents.
5. Any other practices that may mislead consumers or subvert consumer autonomy and choice.

Guidelines would be made applicable to every person engaged in coaching. The objective of the Guidelines is to protect consumers from misleading advertisements in coaching sector. Thus, the proposed Guidelines seek to prevent such misleading advertisements which effects consumers as a class. Misleading advertisement by coaching sector will be governed as per Consumer Protection Act, 2019 and the proposed guidelines will bring clarity to the stakeholders and protect consumer interests.

DRAFT

CENTRAL CONSUMER PROTECTION AUTHORITY NOTIFICATION

F. No. CCPA-1/2/2023-CCPA – (Reg). — In exercise of the powers conferred by section 18 of the Consumer Protection Act, 2019 (35 of 2019), the Central Consumer Protection Authority hereby issues the following guidelines to provide for the prevention and regulation of misleading advertisement in coaching, namely:-

1. Short title and commencement. — (1) These guidelines may be called the Guidelines for Prevention of Misleading Advertisement in Coaching, 2024.
   (2) It shall come into force on the date of its publication in the Official Gazette.
2. Definitions. – (1) In these guidelines, unless the context otherwise requires,-
   a. “Act” means the Consumer Protection Act, 2019 (35 of 2019);
   b. “Advertisement” shall have the same meaning as defined under Consumer Protection Act, 2019(35 of 2019);
   c. “Coaching” means tuition, instructions or academic support or learning programme or guidance provided by any person.
   d. “Central Consumer Protection Authority” shall mean the authority established under section 10 of the Consumer Protection Act 2019 (35 of 2019);
   e. ‘Misleading Advertisement’ shall have the same meaning as defined under Consumer Protection Act, 2019 (35 of 2019);
   f. “Person” means an individual and includes a group of persons or a body corporate, or a trust, firm or society or an institution.
   (2) The words and expressions used in these guidelines but not defined, and defined in the Act, shall have the same meaning as respectively assigned to them in the Act.
3. Application –– These guidelines shall apply to all advertisements regardless of form, format or medium.
4. Conditions for Misleading Advertisement –– Any person who engage in coaching shall be considered to be engage in a misleading advertisement if it employs any of the following practices –
   a. Conceal important information related to name of the course (whether free or paid) &
   duration of course opted by successful candidate or any other important information
   which can influence a consumer’s decision to choose their services.
   b. Make false claims regarding success rates, number of selections, or rankings of
   students in any competitive exam without providing verifiable evidence.
   c. Falsely represent that students’ success is solely attributable to the coaching, without
   acknowledging the individual efforts of the students. Clearly state the extent of the
   coaching involvement in their success.
   d. Create false sense of urgency or fear of missing out that may heighten anxieties amongst students, or parents.
   e. Any other practices that may mislead consumers or subvert consumer autonomy and choice.
5. Obligations of every person engaged in coaching ––(1) Every person who is engaged in coaching shall––
   a. Disclose following information with successful candidate photo:-
   i. Rank secured by successful candidate.
   ii. Name of course opted by successful candidate.
   iii. Duration of course opted by successful candidate.
   iv. Whether such course is paid or free.
   b. Put disclaimer/disclosure/Important information at a prominent and visible place in the advertisement. The font of disclaimer/disclosure/Important information in the
   advertisement shall be the same as that used in the claim/advertisement.
   c. Accurately represent the facilities, resources and infrastructure available to students in the advertisement.
   d. Avoid cherry-picking exceptional cases to create a skewed impression of success.
   e. Maintain transparency and truthful representation in their advertisement.
   f. Provide accurate, verifiable information about their services in the advertisement.
   (2) Every Person who is engaged in coaching shall not––
   a. Use names, photos, testimonial or videos of successful candidate in advertisement
   without successful candidate’s express consent.
   b. Make false claims which includes 100% selection or 100% job guaranteed or
   guaranteed preliminary/mains or guaranteed admission to institutions or false
   testimonials of successful students or fake reviews.
   c. State or lead the consumers to believe that enrolment in coaching will guarantee the student a rank, high marks, temporary or permanent job, admissions to institutions, job promotions, salary increase, etc. unless the coaching is able to substantiate to such effect.
   d. Falsely represent that the services are of a particular standard/quality.
   e. Mislead or make exaggerated claims about faculty credential.
   f. Falsely represent that the courses or certificate offered have recognition and/or approval of competent authority.
6. Guidelines not in derogation of other laws –– Where an advertisement is regulated under any other law for the time being in force or the rules or regulations made thereunder, the provisions contained in these guidelines shall be in addition to and not in derogation of, such regulation in other laws.
7. Interpretation –– In cases of any ambiguity or dispute in interpretation of these guidelines, the decision of the Central Consumer Protection Authority shall be considered final.
8. Contravention of Guidelines –– The provisions of the Act shall apply for any contravention of these guidelines.