Syllabus: GS2/ Education
Context
- The Central Consumer Protection Authority (CCPA) has issued comprehensive guidelines to address the issue of misleading advertisements in the coaching sector.
About
- 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 guarantees etc.
Important definition in the Guidelines
- Coaching includes academic support, imparting education, guidance, instructions, study programme or tuition or any other activity of similar nature but does not include counseling, sports, dance, theater and other creative activities;
- Coaching Center includes a center, established, run, or administered by any person(s) for providing coaching to more than fifty students;
- Endorser shall have the same meaning as provided under clause 2(f) of the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.
Key Highlights of the Guidelines
- 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.
- 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.
- 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: Coaching institutes will no longer be allowed to use successful candidate’s photographs, names, or testimonials without post-selection consent.
- No Creation of False Urgency: The guidelines aim to address common practices in coaching that create false urgency or scarcity such as suggesting limited seats or overstating demand.
- 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.
| Consumer Protection Act, 2019 – This Act replaced The Consumer Protection Act, 1986, and seeks to widen its scope in addressing consumer concerns. – The new Act recognises offenses such as providing false information regarding the quality or quantity of a good or service, and misleading advertisements. – The Act came into force in July 2020 and it will empower consumers and help them in protecting their rights through its various notified rules and provisions. Central Consumer Protection Authority – Section 10 of the Consumer Protection Act, 2019 establishes the Central Consumer Protection Authority which seeks to promote, protect and enforce the rights of consumers as a class. – Powers & Functions of CCPA: It is empowered to: 1. conduct investigations into violation of consumer rights and institute complaints / prosecution 2. order recall of unsafe goods and services 3. order discontinuation of unfair trade practices and misleading advertisements 4. impose penalties on manufacturers/endorsers/publishers of misleading advertisements. |
Source: PIB