The Central Consumer Protection Authority (CCPA) has passed final orders against two IAS Coaching Centres imposing a penalty of Rs 8,00,000 each for indulging in misleading advertisements, unfair trade practices, and violating consumer rights under the Consumer Protection Act, 2019. This action was taken to protect the rights of consumers as a class and ensure that no false or misleading advertisement contradicts the provisions of the Consumer Protection Act, 2019.
The authority initiated action after receiving representations from successful UPSC candidates whose names and photographs were used without consent in advertisements claiming credit for their results. Misleading advertisements undermine a consumer’s right to be informed, which is critical in the field of education where aspirants invest significant time, effort, and financial resources.
Case of Dikshant IAS
The CCPA received a representation from Ms. Mini Shukla (AIR 96, UPSC CSE 2021), who clarified that she had never been associated with Dikshant IAS and had only attended a mock interview at Chahal Academy, which she later learned was jointly organized with Dikshant IAS.
Dikshant IAS claimed “200+ Results in UPSC CSE 2021”. The institute could produce only 116 enrolment forms against its claim and failed to submit any agreement with Chahal Academy. The CCPA found that the institute was taking full credit for the results across all examination stages by deliberately concealing from potential aspirants that the candidates’ association was limited to the interview stage.
The CCPA noted that this is the second penalty imposed on Dikshant IAS for similar conduct, following an earlier penalty of Rs 3 lakh in September 2024 for misleading claims in the UPSC CSE 2021 results.
Case of Abhimanu IAS
Abhimanu IAS faced action after receiving a representation from Ms. Natasha Goyal (AIR 175, UPSC CSE 2022), who alleged the institute had falsely claimed her as its student and used her name and photograph without authorization.
- Unauthorized Use: The institute used her name and photograph without consent, even though she had only received a question bank for a mock interview that was never conducted.
- Unsubstantiated Claims: Abhimanu IAS published multiple misleading claims, including “2200+ Selections since Inception,” “10+ Selections in IAS Top 10,” and “1st Rank in HCS/PCS/HAS”.
- Lack of Evidence: The institute failed to produce evidence for its claim of “2200+ Selections since Inception” and did not specify which examinations (UPSC, HCS, RBI Grade-B, etc.) these selections referred to.
- Deceptive Advertising: The CCPA found that 88 students included in the claimed 139 selections had only attended mock interview programs or received personalized question banks, having cleared the Prelims and Mains stages without the institute’s assistance. Furthermore, the claims of “10+ Selections in IAS Top 10” mostly dated back to 2001–2012, making the omission of the phrase “since 1999” a material omission that misled consumers into believing the results were recent.
Total Enforcement Action
The CCPA has currently issued 57 notices to various coaching institutes for misleading advertisements and unfair trade practices. Penalties amounting to over Rs 98.6 lakh have been imposed on 27 coaching institutes, along with directions to discontinue such misleading claims. The CCPA has urged successful candidates of competitive examinations to promptly report any instance where a coaching institute falsely uses their name or photograph.