Crackdown on misleading UPSC coaching ads: Vajirao & Reddy, StudyIQ IAS fined ₹7 lakh each

Days after penalising Shubhra Ranjan IAS Study ₹2 lakh for misleading advertisements, the Central Consumer Protection Authority (CCPA) has taken similar action against Vajirao & Reddy Institute, StudyIQ IAS, and Edge IAS for violations of the Consumer Protection Act, 2019.

Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra ordered penalties of ₹7 lakh each on Vajirao & Reddy Institute and StudyIQ IAS, and ₹1 lakh on Edge IAS. The coaching institutes were found guilty of publishing misleading claims about their success rates in the Union Public Service Commission (UPSC) Civil Services Examination (CSE) of 2022 and 2023.

Vajirao & Reddy Institute advertised a series of claims including “617 selections out of 933 in UPSC CSE 2022”, “7 in Top 10 AIR,” “16 in Top 20 AIR,” and “72 in Top 100 AIR.”

CCPA’s investigation revealed that all 617 candidates referred in the advertisement were part of the institute’s Interview Guidance Programme (IGP), offered only at the final stage of the UPSC selection process. The institute concealed information about the specific courses taken by successful candidates, creating the impression that all its courses had similar success rates, which was misleading, the regulator found.

StudyIQ IAS claimed “120+ selections in UPSC CSE 2023” with slogans like “Success Pakka Offer” and “Selection Pakka Offer.” CCPA found that 126 of these students were enrolled in the IGP, with only a few opting for other courses. The regulator also noted the institute failed to substantiate its claims and provide enrollment or fee receipts of the successful candidates.

Edge IAS prominently advertised 13 successful candidates from UPSC CSE 2023 without disclosing that 11 were enrolled in the IGP, while two participated in other mentoring courses.

The CCPA flagged the trend of coaching institutes reusing names and photos of successful candidates in their advertisements without clarifying the courses taken.

Shubhra Ranjan IAS Study was similarly found guilty of misleading claims about the success of its courses.

"Institute used terms such as "Shubhra Ranjan IAS" and "Students of Shubhra Ranjan IAS" in its advertisements and letterheads, creating a deceptive impression that Mrs. Shubhra Ranjan is/was an IAS officer. This constitutes a misrepresentation and unfair trade practice under Consumer Protection Act 2019, thereby misleading the public and potential students into believing that the services or guidance provided by them are directly associated with the credibility of an IAS officer," CCPA said.

"The Institute submitted that it was a clerical mistake, which is not tenable as the term Shubhra Ranjan IAS or @shubhraranjanias has been frequently used on its letterheads and in its advertisements," it added.