NEW DELHI (India CSR): The Central Consumer Protection Authority (CCPA) has once again pulled up coaching institutes for misleading claims, this time penalizing Drishti IAS (VDK Eduventures Pvt. Ltd.) with a fine of Rs 5 lakh. The penalty was imposed for publishing advertisements claiming “216+ selections in UPSC Civil Services Examination (CSE) 2022” without disclosing that the majority of the candidates had only enrolled in its free Interview Guidance Programme (IGP).
The order highlights a growing concern over misleading marketing practices in the coaching industry, which influence thousands of aspirants and their families each year.
Misleading Claims in UPSC 2022 Advertisements
Drishti IAS prominently advertised that 216 of its students were selected in the UPSC CSE 2022. However, CCPA’s investigation revealed that 162 candidates (75%) had only attended the free IGP after independently clearing the Prelims and Mains.
Only 54 students had availed of other paid programs such as GS Foundation or optional subject courses. This concealment created the impression that Drishti IAS had contributed to all stages of the candidates’ success, which the Authority deemed misleading under Section 2(28) of the Consumer Protection Act, 2019.
Repeat Offender: Second Penalty in Two Years
This is not the first time Drishti IAS has been penalized for the same practice. In September 2024, the CCPA had fined the institute ₹3 lakh for claiming “150+ selections in UPSC CSE 2021.”
In that instance, out of 161 candidates showcased, 148 were enrolled only in the Interview Guidance Programme, with very few actually associated with the institute’s full-length courses. Despite being warned and penalized earlier, the institute repeated the practice in 2022, increasing its claims to “216+ selections.”
The repeated violation, according to CCPA, demonstrates a disregard for consumer rights and an intentional attempt to mislead aspirants.
Consumer Rights at the Core
The CCPA emphasized that concealing crucial details deprives aspirants and parents of their right to make informed decisions, guaranteed under Section 2(9) of the Consumer Protection Act, 2019.
Such advertisements not only distort the reality of coaching institutes’ role in student success but also create false expectations. Many families invest large sums of money based on these claims, only to realize later that the results were achieved by students who had little to no exposure to the institute’s full courses.
Wider Crackdown on Coaching Institutes
The CCPA has been actively scrutinizing coaching institutes across India for unfair trade practices and misleading advertisements.
- So far, 54 notices have been issued to various institutes.
- Penalties worth Rs 90.6 lakh have been imposed on 26 coaching centers.
- In most cases, institutes concealed the actual programs attended by successful candidates while making sweeping claims of “selections.”
This crackdown reflects the Authority’s intent to regulate the booming but often opaque coaching sector, which has a direct impact on millions of students preparing for competitive exams.
CCPA’s Message to Coaching Industry
The Authority has made it clear that all coaching institutes must ensure transparency in their advertisements. Truthful disclosure of facts about the type and duration of courses taken by successful candidates is mandatory to prevent aspirants from being misled.
The CCPA reiterated that false or exaggerated claims amount to unfair trade practices, and repeated violations will invite stricter action.
Implications for Students and Parents
For aspirants and their families, the order serves as an important reminder to look beyond advertisements before choosing a coaching institute. Key takeaways include:
- Scrutinize the type of courses linked to advertised results.
- Verify whether the claimed “selections” include students from free short-term programs or long-term paid courses.
- Rely on independent reviews and peer feedback rather than glossy advertisements.
With the UPSC coaching industry estimated to be worth several thousand crores, transparency is crucial to protect students from being misled.
You Learn
The Rs 5 lakh penalty on Drishti IAS underscores CCPA’s determination to safeguard student rights and ensure fair practices in the competitive exam coaching industry. By holding institutes accountable for misleading advertisements, the Authority is sending a strong message that consumer rights cannot be compromised for profit-driven publicity.
For aspirants, this order highlights the importance of informed decision-making, while for coaching institutes, it serves as a reminder that integrity and transparency must guide their claims.
(India CSR)
