New guidelines for coaching industry to curb misleading ads: Here's what it can't claim

The Central Consumer Protection Authority (CCPA) on Wednesday released new guidelines to curb misleading advertisements in the coaching industry amid concerns over the high-pressure sales tactics.

The coaching centres are no longer allowed to make unrealistic promises, such as “guaranteed” selection, assured admission into top institutions, or promises of high ranks in exams. They are also required to clearly display important information in their advertisements, like actual success rates, the qualifications of their faculty, and the real costs involved.

The guidelines also require that any information on students’ achievements, such as high ranks or top scores, is displayed accurately and with proper disclaimers.

“The font of disclaimer and important information in the advertisement shall be the same as that used in the claim,” the guidelines read.

If a coaching centre wants to include testimonials or photos of successful students in its ads, it must obtain written consent from those students after they achieve success.

The advertisement should also accurately represent the service, facilities, resources and infrastructure of the coaching centre

The guidelines bar coaching centres from creating a false sense of urgency or scarcity by implying limited seats or exaggerated demands to pressure students into making immediate decisions.

"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, ensuring accountability, and preventing further occurrences of such deceptive practices," the ministry of consumer affairs, food & public distribution said in a statement.

CCPA chief commissioner Nidhi Khare said that misleading advertisements in the coaching sector will be governed as per the Consumer Protection Act, 2019 and the guidelines will bring clarity to the stakeholders and protect consumer interests.

To shape the guidelines, the CCPA consulted with representatives from government departments, educational bodies, and legal experts. A draft version was released earlier this year, inviting feedback from stakeholders, including well-known coaching institutes such as ALLEN Career Institute and FIITJEE, along with consumer rights groups.