CCPA issues 20 notices to IAS coaching institutes for misleading ads

The Central Consumer Protection Authority (CCPA) has issued 20 notices to IAS coaching institutes for misleading advertisements and imposed penalties on eight such IAS coaching institutes.

This information was given by the Union Minister of State for Consumer Affairs, Food & Public Distribution, Ashwini Kumar Choubey in a written reply in the Lok Sabha.

The Department of Consumer Affairs is continuously working for consumer protection and empowerment of consumers by enactment of progressive legislations. With a view to modernise the framework governing the consumer protection in the new era of globalisation, technologies, e-commerce markets, etc., Consumer Protection Act, 1986 was repealed and Consumer Protection Act 2019 was enacted.

Under the Consumer Protection Act, 2019, misleading advertisement in relation to any product or service is defined as an advertisement, which:

Falsely describes such product or service; or
Gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service; or
Conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or
Deliberately conceals important information.

Under the provisions of the Consumer Protection Act, 2019, the Central Consumer Protection Authority (CCPA) has been established w.e.f July 24, 2020 to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers as a class.

The CCPA has notified the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 on 9th June, 2022. These guidelines inter-alia provide for:

Conditions for an advertisement to be non-misleading and valid
Certain stipulations in respect of bait advertisements and free claim advertisements
Duties of manufacturer, service provider, advertiser and advertising agency

The CCPA had issued ‘Guidelines for Prevention and Regulation of Dark Patterns, 2023’ on November 30, 2023 for prevention and regulation of dark patterns listing 13 specified dark patterns.