CCPA Imposes ₹7 Lakh Penalty for Misleading Claims Relating to UPSC Civil Services Examination Results

Institute concealed material information about nature of courses attended by successful candidates

CCPA reiterates that consumers have the right to accurate information before choosing coaching services

The Central Consumer Protection Authority (CCPA) has passed a final order against Vajiram and Ravi IAS Study Centre LLP, imposing a penalty of ₹7,00,000 for indulging in misleading advertisement through deliberate concealment of material information, in violation of the Consumer Protection Act, 2019. The decision was taken to protect and promote the rights of consumers as a class and to ensure that no false or misleading advertisement is made in respect of any goods or services in contravention of the provisions of the Consumer Protection Act, 2019.

The Central Consumer Protection Authority (CCPA), headed by Chief Commissioner, Smt. Nidhi Khare, and Commissioner, Shri Anupam Mishra, passed the Order against Vajiram and Ravi IAS Study Centre LLP after observing that the coaching institute made tall claims and prominently used the names, photographs, and achievements of successful candidates of the UPSC Civil Services Examination (CSE) 2023 while concealing important information regarding the specific courses opted for by such candidates.

The following claims were published on the institute’s official website (www.vajiramandravi.com) following declaration of the UPSC CSE 2023:

1. “8 Rank Holders in the Top 10 are from Vajiram & Ravi”
2. “37 Rank Holders in the Top 50 are from Vajiram & Ravi.”
3. “Fact: Every year, more than 30% of the officers selected through UPSC Civil Services Examination are students of Vajiram & Ravi.”

CCPA after detailed investigation observed the following:

The abovementioned important information was not disclosed on the institute’s official website in any of these years.

The CCPA also noted that the IGP is a programme that commences only after a candidate has independently cleared both the Preliminary and Mains stages of the UPSC CSE two highly rigorous competitive stages at which the institute had no academic contribution. By prominently featuring such candidates alongside advertisements for comprehensive paid coaching programmes, without any disclosure of the specific course opted for, the institute created a misleading impression that these candidates were products of its full-length coaching programmes.

The CCPA observed that non-disclosure of the specific courses opted for by successful candidates including whether such candidates attended full-length classroom programmes, optional subject coaching, test series, or a free interview guidance programme of short duration amounts to misleading advertisement under the Act, as it deprives prospective consumers of the ability to make an informed choice. The CCPA held that the impugned advertisements fall squarely within the definition of “misleading advertisement” under Section 2(28) (iv) of the Consumer Protection Act, 2019, which prohibits deliberate concealment of important information. The conduct was further found to be in violation of Section 2(9) of the Act, which confers upon consumers the right to be informed.

So far, the CCPA has issued more than 60 notices to coaching institutes for misleading advertisements and unfair trade practices in order to safeguard the interests of students and to ensure transparency in the coaching sector. The CCPA has imposed penalties amounting to over ₹1.46 crore on coaching institutes offering coaching for examinations such as UPSC Civil Services Examination (CSE), IIT-JEE, NEET, RBI, and other competitive examinations.

(Final Orders can be accessed via the following link: https://jagograhakjago.gov.in/CCPA_Orders/index.html).