Section 18 of the Act allows CCPA to ensure that no false advertisement is made (representational).
The Central Consumer Protection Authority (CCPA) on Sunday said it has imposed a penalty of Rs 5 lakh on Shankar IAS Academy for issuing misleading advertisements related to the UPSC Civil Service Exam 2022.
The decision was taken by the CCPA to protect and promote the rights of consumers, ensuring that no false or misleading advertisement is made of any goods or services which contravenes the provisions of the Consumer Protection Act, 2019.
CCPA Chief Commissioner Nidhi Khare said that according to reports, more than 10 lakh candidates apply for the UPSC civil services examination every year.
"Shankar IAS Academy's advertisement was targeted towards a class of consumers - UPSC aspirants. That's why such advertisements shall contain truthful and honest representation of facts by disclosing important information in such a manner that they are clear, prominent and extremely hard to miss for consumers," she mentioned.
Section 18 of the Act empowers CCPA that it shall ensure that no false or misleading advertisement is made in respect of any goods or services which contravenes the provisions of this Act or the rules or regulations made thereunder.
In its advertisement related to the UPSC Civil Service exam 2022, Shankar IAS Academy claimed 336 selections out of 933 at All India Level; 40 candidates in Top 100; 42 candidates cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy and Best IAS Academy in India.
The CCPA probe found that Shankar IAS Academy advertised various types of courses but the information with respect to the course opted by the advertised successful candidates in the UPSC Civil Service exams results was "deliberately concealed in the advertisement".
This had the effect of consumers falsely believing that all the successful candidates so claimed by the Institute had opted for the paid courses advertised by the Institute on its website.
"In other words, this practice consequently attracts consumers into buying paid courses advertised by the coaching institutes," said the regulator that comes under the Ministry of Consumer Affairs.
In its response, Shankar IAS Academy submitted the details of only 333 successful candidates against its claim of 336 plus selections in UPSC CSE 2022.
Out of 336 claimed students, 221 took Free Interview Guidance Programme, 71 took Mains Test Series, 35 took Prelims Test Series, 12 took General Studies Prelims cum Mains, 4 took Prelims Test Series with Some other mains course (optional and/or GS).
"This fact was not disclosed in their advertisement, thereby deceiving consumers. By concealing this important fact, such false and misleading advertisement creates a huge impact on those consumers who are UPSC aspirants without letting them know that Shankar IAS Academy's role in candidates' success," the CCPA stressed.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)