New Delhi: A total of 45 notices have been issued to several coaching institutes across India over misleading advertisements and penalties worth Rs 61.6 have been slapped by the central government against 19 such establishments for involvement in unfair trade practices that misled students, the Centre informed the Lok Sabha on Wednesday.
Union Minister of State for Consumer Affairs, Food, and Public Distribution, BL Verma, said this in a written reply in the Lok Sabha over concerns raised about deceptive advertising in the coaching sector by members Dhairyasheel Sambhajirao Mane and Sudheer Gupta.
In his response, Verma highlighted the release of the “Guidelines for Prevention of Misleading Advertisements in the Coaching Sector, 2024” by the Central Consumer Protection Authority (CCPA) on 13 November. These guidelines aim to prevent coaching centres from making false or misleading claims and to safeguard students and parents from exploitation.
According to the guidelines, Coaching centres are barred from making unverified claims about the number of selections, success rates, rankings, or guaranteed admissions.
Written consent is now mandatory before using a student’s name, photo, or testimonial in advertisements and coaching centres must disclose whether course fees were paid by the student or sponsored by another party.
Coaching institutes are required to collaborate with the National Consumer Helpline (NCH) under the Ministry of Consumer Affairs to allow students to report concerns about misleading advertisements or unfair practices.
Verma said that the NCH has successfully resolved numerous grievances from students preparing for competitive exams like UPSC Civil Services, JEE, and NEET, recovering refunds amounting to Rs 1.15 crore.
The government has tightened regulations due to the intense competition for seats in engineering, medical, and civil services programs, which has led to exaggerated success claims by coaching institutes. Verma noted that such practices often result in mental distress and even suicides among aspirants.
Recently, a Rs 3 lakh penalty was imposed on Sriram’s IAS, a coaching institute for civil services exams, for misleading advertisements with exaggerated claims.
Growing Concerns in the Coaching Sector
The rise of coaching centres has raised significant concerns about student welfare. This issue gained national attention after three students drowned in the illegal basement classroom of a coaching institute during a cloudburst in Delhi on 28 July.
Kota, Rajasthan, a hub for competitive exam preparation, has also faced scrutiny. Students from across the country move to Kota after completing Class X, enrolling in residential test-prep institutes. These institutes often prioritise test preparation over holistic education, leading to high levels of stress among students, many of whom struggle with being away from their families.
The government’s new measures seek to address these challenges by promoting accountability and transparency in the coaching sector, ensuring a safer and more supportive environment for students.
