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CCPA Imposes Rs 61.6 Lakh Penalty on 19 Coaching Centres for Misleading Ads

The Central Consumer Protection Authority (CCPA) has penalized 19 coaching institutes Rs 61.6 lakh for misleading advertisements.
The Central Consumer Protection Authority (CCPA) has imposed a total penalty of Rs 61.6 lakh on 19 coaching institutes for misleading advertisements.

New Delhi: The Central Consumer Protection Authority (CCPA) has taken action against coaching institutes for misleading advertisements, imposing a total penalty of Rs 61.6 lakh on 19 of them. Furthermore, 45 other coaching centres have received notices from the CCPA regarding similar violations, according to the Press Information Bureau, Government of India.  

This move comes after the CCPA introduced the “Guidelines for Prevention of Misleading Advertisements in the Coaching Sector” on November 13, 2024. These guidelines aim to curb false or deceptive claims made by coaching centres in their promotional activities, ensuring transparency in the sale of goods and services. Minister of State for Consumer Affairs, B.L. Verma, informed the Rajya Sabha about these guidelines in a written response.  

Consumer Grievance Redressal:

The National Consumer Helpline (NCH), managed by the Department of Consumer Affairs, plays a crucial role in addressing consumer grievances at the pre-litigation stage. Consumers can register their complaints through various channels, including WhatsApp, SMS, email, the NCH app, web portal, and the Umang app, on the Integrated Grievance Redressal Mechanism (INGRAM).  

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A significant number of companies, totaling 1,004, have voluntarily joined the NCH’s ‘Convergence’ program, directly addressing grievances through their own redressal processes. These companies also provide feedback to the complainant via the NCH portal. For companies not participating in this program, complaints are forwarded to their respective company emails for resolution.  

Addressing Student Grievances:

The NCH has effectively addressed numerous grievances against coaching centres, particularly concerning non-refunded enrolment fees. Through focused initiatives, the NCH has secured a total refund of Rs 1.15 crore for affected students.  

CCPA’s Role in Consumer Protection:

Established under the Consumer Protection Act, 2019, the CCPA plays a vital role in overseeing consumer rights violations, unfair trade practices, and misleading advertisements. The authority is mandated to promote, protect, and enforce consumer rights collectively.  

Department of Consumer Affairs Focus:

The Department of Consumer Affairs is actively committed to consumer protection and empowerment through the implementation of progressive legislation. The Consumer Protection Act, 2019, replaced the 1986 Act to modernize consumer protection laws in line with globalization, technological advancements, and the evolving e-commerce landscape.

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