CCPA imposes Rs 3 lakh penalty on Sriram’s IAS coaching Institute for misleading ads

New Delhi: The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 3 lakh for misleading advertisement on Sriram’s IAS.

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.

The CCPA, under the control of the Ministry of Consumer Affairs, Food, and Public Distribution, is a body to regulate matters relating to violation of consumer rights, misleading advertisement and unfair trade practice which are prejudicial to the interest of consumers as a class and public at large.

In view of the violation of the Consumer Protection Act, 2019, the CCPA, headed by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra, has issued an order against Sriram’s IAS for misleading advertisement regarding the UPSC Civil Service Exam 2022, an official statement by the ministry said.

Coaching institutes and online edtech platforms use pictures and names of the same successful candidates to influence prospective aspirants (consumers) without disclosing the courses opted by such candidates & length of the courses so attended.

Smt. Nidhi Khare, Chief Commissioner of the CCPA, emphasised that an advertisement shall contain a 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. She highlighted the importance of consumer rights and the obligation of advertisers to provide accurate information to consumers, the ministry added.

According to the statement by the ministry, Sriram’s IAS made the claims in its advertisement made the claims saying, i) 200 plus selections in the UPSC Civil Service Exam 2022; and ii) We are India's No. 1 Prestigious UPSC/IAS Coaching Institute.

CCPA found out that Sriram’s IAS advertised various types of courses, but the information with respect to the course opted by the advertised successful candidates in the abovementioned UPSC Civil Service exam results was deliberately concealed in the advertisement. This has the effect of consumers falsely believing that all the successful candidates claimed by the institute had opted for the paid courses advertised by the institute on its website.

Section 2(28)(iv) of the Consumer Protection Act talks about misleading advertisements in relation to deliberately concealing important information. Information regarding the course opted by successful candidates is important for consumers to know so that they can make an informed choice while deciding which course and coaching institute to join.

Sriram’s IAS, in its response, submitted the details of only 171 successful candidates against its claim of 200 plus selections in UPSC CSE 2022. Out of these 171 candidates, 102 were from the Free Interview Guidance Programme (IGP), 55 were from the Free Test Series, 9 were from the GS Classroom course, and 5 candidates were from different States under the MoU signed between the State Government and the Institute to provide free coaching. This fact was not disclosed in their advertisement, thereby deceiving consumers.

It is a well-known fact that successful candidates of Civil Services Examination have to clear all three stages of the exam. Viz., Prelims, Main Exams,, and Personality Test (PT). While Prelims is a screening test, the marks obtained in both the Exams and Personality personality test are counted for getting finally selected. The total marks for Main Exams and PT are 1750 and 275, respectively. Thus, the contribution of the personality test is 13.5% in the total marks.

The majority of candidates had already cleared the preliminary and main examinations by himself/herself, with no contribution of Sriram’s IAS. By concealing this important fact, such false and misleading advertisements create a huge impact on those consumers who are UPSC aspirants without letting them know that Sriram’s IAS had offered guidance to only such successful candidates who had already cleared Preliminary and main examinations of the UPSC examination.

Thus, the advertisement has violated the consumer’s right to be informed so as to protect himself against unfair trade practices, the Ministry added.