Consumer Protection Authority penalises Sriram’s IAS coaching centre for misleading UPSC ad

The Central Consumer Protection Authority (CCPA) has fined the coaching institute Sriram’s IAS Rs 3 lakh for publishing a misleading advertisement related to the UPSC Civil Service Exam 2022, reports PTI.

The CCPA imposed the penalty for violating consumer rights and misleading potential customers. The regulator found that Sriram’s IAS made false claims in its advertisements, stating ‘200 plus selections in UPSC Civil Service Exam 2022’ and promoting itself as ‘India’s No.1 Prestigious UPSC/IAS Coaching Institute’.

According to the CCPA, Sriram’s IAS concealed crucial information about the courses taken by the successful candidates it featured in its ads. The institute did not disclose that many of the advertised successful candidates had either participated in free programs or had already passed significant stages of the exam independently.

The CCPA’s Chief Commissioner, Nidhi Khare, and Commissioner, Anupam Mishra, said the penalty was imposed to protect consumer rights and prevent misleading advertising practices. They stressed that advertisements must be truthful and disclose all relevant information clearly to avoid misleading consumers.

Sriram’s IAS had only provided details for 171 of the 200 plus candidates it claimed to have helped, with many of these candidates coming from free or subsidised programs.

Out of these 171 candidates, 102 were from Free Interview Guidance Programme (IGP), 55 were from Free Test Series, 9 were from GS Classroom course and 5 candidates were from different states under the MoU signed between the state government and the institute to provide free coaching.

“This fact was not disclosed in their advertisement, thereby deceiving consumers,” the regulator asserted.

The CCPA said that majority of candidates had already cleared Preliminary and Mains examination by himself/herself, with no contribution of Sriram’s IAS.

“By concealing this important fact, such false & misleading advertisement creates huge impact on those consumers who are UPSC aspirants without letting them know that Sriram’s IAS had offered guidance to only such successful candidates who had already cleared Preliminary and Mains examination of UPSC examination,” it said.

The CCPA underscored the importance of accurate and honest representation in advertisements to ensure consumers are well-informed and protected from unfair trade practices.