CENTRE SETS NEW GUIDELINES FOR TRANSPARENT COACHING ADVERTISEMENTS
Why in the news?
The Centre issued guidelines to curb misleading claims by coaching institutes, enforcing transparency in success rates, infrastructure, and requiring consent for minors’ testimonials, aiming to protect consumers.
New Guidelines for Transparency in Coaching Advertisements:
- The Central Consumer Protection Authority (CCPA) issued new guidelines mandating coaching institutes to disclose accurate information regarding their students and services.
- Secretary Nidhi Khare emphasised that coaching centres must include clear disclaimers and clarifications in advertisements, aiming to prevent parents and students from being misled.
- The guidelines specify that coaching centres must obtain consent for using photographs and testimonials of minor candidates, and only if they have been selected.
Accountability for Claims and Success Rates
- The guidelines require coaching centres to accurately present their services, facilities, and infrastructure without making exaggerated claims.
- The CCPA issued warnings against promoting false or unverifiable success rates, citing that nine UPSC coaching institutes collectively claimed over 2,600 selections, while actual selections totaled around 1,000.
- Violations will result in penalties; so far, 45 UPSC coaching institutes have been fined over ₹56 lakh, with stricter penalties or suspension possible for repeated violations.
Emphasis on Grievance Redressal and Consumer Transparency
- Institutes are now required to establish a proactive consumer grievance redressal mechanism, with a recent intervention leading to refunds exceeding ₹1 crore from September last year to August this year.
- The CCPA highlighted that the guidelines aim to enhance transparency, ensure truthful advertising, and provide consumers with reliable information to make informed choices about coaching services.