Syllabus: GS2/Governance
| Context Source: PIB The Government is discussing the guidelines to regulate the misleading ads, fake claims by the coaching sector. Recently, CCPA has issued notices to 31 coaching institutes for misleading advertisement and imposed fine on 9 of them for misleading advertisements. The Central Consumer Protection Authority (CCPA) conducted the first meeting of the Committee constituted to prepare Guidelines. |
What are The Guidelines?
- Applicability: The Guidelines shall be applicable to all the coaching institutes whether online or physical and cover all forms of advertisement, regardless of form, format or medium.
- Defining Misleading Advertisement: It is defined under the Consumer Protection Act 2019 which inter-alia include concealing important information related to the course opted by the successful candidates.
- Coaching institutes must not make deceptive promises about success rates or number of selections, or engage in tactics that undermine consumer autonomy and choice.
- DO’s and DON’Ts before coming up with advertisements:
- The Coaching Institute will provide information on successful candidates, including their rank, course choice, duration, and payment status, along with their photo.
- Coaching institutes shall not claim 100% selection or 100% job guaranteed or guaranteed preliminary or mains.
- The disclaimer or important information in the advertisement must be in the same typeface as the claim/advertisement and placed prominently and visibly in the advertisement.
- Penalty for misleading advertisements by the coaching Centre will be governed as per Consumer Protection Act, 2019.
What is Central Consumer Protection Authority (CCPA)?
- It was established in 2020 under the provisions of the Consumer Protection Act, 2019.
- The primary mandate of the CCPA is to promote, protect, and enforce the rights of consumers.
- It aims to ensure fair trade practices and protect consumers from unfair business practices.
- Enforcement of Consumer Rights: The CCPA has the authority to investigate, inquire into, and take appropriate action against unfair trade practices, misleading advertisements, and violations of consumer rights.
- Penalties and Compensation: The authority can impose penalties on businesses or individuals found guilty of unfair trade practices.