MUMBAI: Coaching centres had better watch out. No more will their promoters be able to make wild claims in an attempt to lure naïve students to take up courses with them. Nor will they be allowed to force students to endorse their courses. 

The  Central Consumer Protection Authority (CCPA) has issued comprehensive guidelines to address the issue of misleading advertisements in the coaching sector. Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024,  aim to safeguard students and the public from deceptive marketing practices commonly employed by coaching centers, disclosed CCPA chief commissioner and secretary department of consumer affairs Nidhi Khare at a press meet on 13 November 2024. 

The guidelines have been drawn up a by a committee that was chaired by the then chief commissioner CCPA which included representatives from the CCPA, department of personnel & training, ministry of education, Lal Bahadur Shastri National Academy of Administration (as a special invitee), National Law University (NLU) Delhi, law firm and industry stakeholders.

These guidelines are drafted in the wake of growing concerns about false/misleading claims, exaggerated success rates, and unfair contracts that coaching institutes often impose on students. Such practices have been found to mislead students, influencing their decisions by concealing important information, giving false guarantee etc.
 

Some of the Key Highlights of the guidelines are as follows:

Regulation of advertisements: The guidelines explicitly prohibit coaching institutes from making false claims related to the courses offered, their duration, faculty qualifications, fees, and refund policies;  selection rates, success stories, exam rankings, and job security promises and assured admissions, high exam scores, guaranteed selections or promotions.

Truthful representation: Misleading representations about the quality or standard of their services are strictly prohibited. Coaching institutes must accurately represent their infrastructure, resources, and facilities.

Students’ success stories:  In a notable move, the guidelines reportedly will prevent coaching centers from using students' names, photos, or testimonials in advertisements without their written consent—and importantly, this consent must be obtained only after the student’s success. This provision is intended to reduce the pressure student’s face when enrolling, as they are often pushed into signing such agreements upfront.

Transparency and disclosure: Coaching centers will need to disclose important information, such as the name, rank, and course details alongside the student’s photo in an ad. Whether the course was paid for by the student that too must be clearly stated. Additionally, any disclaimers will need to be prominently displayed, with the same font size as other important details, ensuring that consumers are not misled by fine print.

No creation of false urgency: The guidelines will reportedly target the common tactic used by any person engaged in coaching, that is, creating a false sense of urgency or scarcity, such as implying limited seats or exaggerated demand, to pressure students into making immediate decision.

Convergence with national consumer helpline: Every coaching center will be required to partner with the national consumer helpline, making it easier for students to raise concerns or complaints regarding misleading advertisements and unfair trade practices.

Fair contracts: The guidelines are also said to address the issue of unfair contracts that students are often enter into with coaching centers. Coaching institutes will no longer be allowed to use successful candidate’s photographs, names, or testimonials without post-selection consent. This provision is intended to eliminate the pressure that many students face when enrolling in coaching centers.

Enforcement and penalties: Any violation of these guidelines will be treated as a contravention of the Consumer Protection Act, 2019. The Central Authority has the power to take stringent actions against offenders, including imposing penalties, ensuring accountability, and preventing further occurrences of such deceptive practices.

Khare, emphasised that CCPA seeks to work closely with industry stakeholders, consumer organisations, and regulatory bodies to ensure effective implementation and compliance with the guidelines in the interest of consumers and public. She further stated that misleading advertisement in coaching sector will be governed as per Consumer Protection Act, 2019 and the guidelines will bring clarity to the stakeholders and protect consumer interests.