Prevention of Misleading Advertisement in Coaching Sector

‘Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024 is the comprehensive guidelines of the Central Consumer Protection Authority (CCPA) to address the issue of misleading advertisements in the coaching sector. These guidelines are drafted in the wake of growing concerns about false/misleading claims, exaggerated success rates, and unfair contracts that coaching institutes often impose on students. Such practices have been found to mislead students, influencing their decisions by concealing important information, giving false guarantee etc.

The aim of the guidelines is to safeguard students and the public from deceptive marketing practices commonly employed by coaching centers. 

Important definition in the Guidelines

1. “Coaching” includes academic support, imparting education, guidance, instructions, study programme or tuition or any other activity of similar nature but does not include counselling, sports, dance, theatre and other creative activities;
2. “Coaching Center” includes a center, established, run, or administered by any person(s) for providing coaching to more than fifty students;
   “Endorser” shall have the same meaning as provided under clause 2(f) of the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.

Applicability

The guidelines will apply to every person engaged in coaching, meaning not just the coaching centers, but also any endorsers or public figures promoting their services through advertisements. Endorsers, who lend their name or reputation to coaching centers, will now be responsible for ensuring that the claims they endorse are accurate and truthful. Endorsers who endorse coaching institutes must verify the claims they are promoting. If they support false success rates or misleading guarantees, they will be held accountable alongside the coaching centres.

Key Highlights of the Guidelines

1. Regulation of Advertisements: The guidelines explicitly prohibit coaching institutes from making false claims related to:
   
   • The courses offered, their duration, faculty qualifications, fees, and refund policies.
   • Selection rates, success stories, exam rankings, and job security promises.
   • Assured admissions, high exam scores, guaranteed selections or promotions.
2. Truthful Representation: Misleading representations about the quality or standard of their services are strictly prohibited. Coaching institutes must accurately represent their infrastructure, resources, and facilities.
3. Students’ Success Stories:  In a notable move, the guidelines reportedly will prevent coaching centers from using students' names, photos, or testimonials in advertisements without their written consent—and importantly, this consent must be obtained only after the student’s success. This provision is intended to reduce the pressure student’s face when enrolling, as they are often pushed into signing such agreements upfront.
4. Transparency and Disclosure: Coaching centers will need to disclose important information, such as the name, rank, and course details alongside the student’s photo in an advertisements. Whether the course was paid for by the student that too must be clearly stated. Additionally, any disclaimers will need to be prominently displayed, with the same font size as other important details, ensuring that consumers are not misled by fine print.
5. No Creation of False Urgency: The guidelines will reportedly target the common tactic used by any person engaged in coaching i.e. creating a false sense of urgency or scarcity, such as implying limited seats or exaggerated demand, to pressure students into making immediate decision.
6. Convergence with National Consumer Helpline: Every coaching center will be required to partner with the National Consumer Helpline, making it easier for students to raise concerns or complaints regarding misleading advertisements and unfair trade practices.
7. Fair Contracts: The guidelines are also said to address the issue of unfair contracts that students are often enter into with coaching centers. Coaching institutes will no longer be allowed to use successful candidate’s photographs, names, or testimonials without post-selection consent. This provision is intended to eliminate the pressure that many students face when enrolling in coaching centers.
8. Enforcement and Penalties: 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 Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024 are expected to bring much-needed transparency and fairness to the sector, ensuring that students and their families can make informed decisions based on truthful information. These guidelines will be in addition to any existing regulations, enhancing the overall regulatory framework governing advertisements in the coaching sector.

Complete Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024