CCPA Slaps Rs 5 Lakh Penalty On Shankar IAS Academy For Deceptive Advertising

The Central Consumer Protection Authority (CCPA) has issued an order against Shankar IAS Academy in what it alleged to be a misleading advertisement regarding the UPSC Civil Service Exam 2022. The CCPA has imposed a monetary penalty of Rs 5 lakh for the misleading advertisement.

Decision by CCPA to Protect Consumer Rights

The consumer protection authority is headed by Chief Commissioner, Nidhi Khare, and Commissioner, Anupam Mishra. “The decision was taken to protect and promote the rights of consumers as a class and ensure that no false or misleading advertisement is made of any goods or services which contravenes the provisions of the Consumer Protection Act, 2019,” Ministry of Consumer Affairs, Food and Public Distribution said in an official statement on Sunday.

Misleading Claims in Shankar IAS Academy’s Advertisement

Under the Act, the consumer protection authority must ensure that no false or misleading advertisement is made in respect of any goods or services. As per the Ministry statement, Shankar IAS Academy in its advertisement had made claims that in the UPSC Civil Service exam 2022 “336 selections out of 933 at All India Level” were from the academy, “40 candidates in Top 100”, “42 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy”, and it was the “Best IAS Academy in India”.

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Concealment of Course Information

“The CCPA found out that Shankar IAS Academy advertised various types of courses but the information with respect to the course opted by the advertised successful candidates in the above-mentioned UPSC Civil Service exams results was deliberately concealed in the advertisement,” the ministry said in the statement. It could lead to 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.

Discrepancies in Candidate Information

According to the Ministry, Shankar IAS Academy in its response submitted the details of only 333 successful candidates against its claim of 336 plus selections. Out of 336 claimed students, 221 took the Free Interview Guidance Programme, 71 took the Mains Test Series, 35 took Prelims Test Series, 12 took General Studies Prelims cum Mains, and 4 took Prelims Test Series with Some other mains course (optional and/or GS).

Advertising Practices in Coaching Institutes

Coaching institutes often bombard newspapers with advertisements soon after the announcement of the UPSC Civil Service examination results. These advertisements prominently feature the names and photographs of successful candidates. Also, coaching institutes tend to prominently use names and photographs of the same successful candidate in their advertisements to create deception as if the successful candidates were full-time classroom students of coaching institutes.

Violation of Consumer Rights

“This fact was not disclosed in their advertisement, thereby deceiving consumers. By concealing this important fact, such false and misleading advertisement creates a huge impact on those consumers who are UPSC aspirants without letting them know that Shankar IAS Academy’s role in candidates’ success.” “Thus, the advertisement has violated the consumer’s right to be informed to protect itself against unfair trade practice.”

Call for Truthful Advertising

Shankar IAS Academy’s advertisement was targeted towards a class of consumers — UPSC aspirants. “That’s why such advertisements shall contain truthful and honest representation of facts by disclosing important information in such a manner that they are clear, prominent, and extremely hard to miss for consumers,” the ministry added.

(Except for the headline, this story has not been edited by Newsx staff and is published from a syndicated feed.)

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