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The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 3 lakh on Sriram's IAS coaching institute for disseminating misleading advertisements regarding UPSC exam results. This action, taken on Sunday, underscores the CCPA's commitment to safeguarding consumer rights and ensuring fair practices in the education sector.
The CCPA's investigation revealed that Sriram's IAS had engaged in deceptive advertising by claiming a high number of selections in the UPSC Civil Service Exam 2022. The institute strategically concealed the courses actually opted for by the advertised successful candidates, leading consumers to believe that all those featured had taken their paid courses. This manipulative tactic violated Section 2(28)(iv) of the Consumer Protection Act, 2019, which explicitly prohibits misleading advertisements by deliberately concealing vital information.
Sriram's IAS, in its defense, provided details of only 171 successful candidates out of its claimed 200 plus selections. Crucially, the majority of these students had actually benefitted from free programs offered by the institute, including the Free Interview Guidance Programme (IGP) and Free Test Series. Furthermore, the institute's advertisement failed to disclose the significant role of students' individual efforts in clearing the preliminary and main examinations, especially since the Personality Test, which contributes only 13.5% to the final score, is where Sriram's IAS's influence is most pronounced. This deceptive strategy targeted aspiring civil servants, misleading them about the true extent of the institute's contribution to their success. The CCPA ultimately ruled that this practice violated consumers' right to be informed and protected from unfair trade practices.
Source: CCPA imposes penalty on 'Sriram's IAS' coaching institute for misleading ad