Modi government's strictness on coaching institutes; Notice to 45 centers on complaint of misleading advertisement, recovery of Rs 1.5 crore

The Central Consumer Protection Authority (CCPA) has complained to 45 coaching centers about misleading publicity. A fine of Rs 61,60,000 has also been imposed on 19 coaching institutes. CCPA has taken this action against advertisements that deceive students. Many coaching centers lure students by telling lies. CCPA continuously monitors such coaching centres; The Department of Consumer Affairs has taken several actions to protect customers; And the National Consumer Helpline has helped students refund more than Rs 1.15 crore.

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Union Minister of State for Consumer Affairs, Food and Public Distribution B.L. Verma said in a written reply in the Rajya Sabha that the Consumer Affairs Department is continuously working to protect and empower consumers, for this new laws are also being made. In 2019, the Consumer Protection Act was enacted, which modernized the Consumer Protection Act of 1986 by replacing it. Under this Act, Central Consumer Protection Authority (CCPA) was created, which takes action on misleading advertisements of coaching centers and helps students in getting the fees refunded.

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Union Minister of State for Consumer Affairs BL Verma told the Rajya Sabha that some coaching institutes were luring candidates preparing for the Indian Administrative Services (IAS) and other entrance exams by making false claims that they could become successful candidates even if they fail. Used to claim. The government has issued strict instructions to stop these wrong practices. The government has warned such institutions to avoid misleading advertisements and violating consumer rights. These institutes have been fined: Khan Study Group, Iqra, Chahal Academy, Narayan Medical, Allen Career Institute, IAS Baba, Byju's IAS, Maluka, Unacademy and Rao IAS.

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CCPA in action

CCPA has been created under Section 10 of the 2019 Consumer Protection Act. Its aim is to prevent violation of consumer rights, unfair trade and misleading advertisements. These advertisements are against the interests of consumers and common people. The goal of the CCPA is to promote, protect, and enforce consumer rights.

On November 13, 2024, CCPA issued “Guidelines for Prevention of Misleading Advertisement in the Coaching Sector, 2024”, aimed at preventing coaching centers from making false or misleading claims or advertisements and engaging in deceptive or unfair practices.

CCPA has sent 45 notices to various coaching centers to protect the interests of consumers. CCPA has imposed a fine of Rs 61,60,000 on 19 coaching institutes. They have been ordered to stop unfair trade practices and misleading advertisements.

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For consumers across the country, the National Consumer Helpline (NCH) operated by the Department of Consumer Affairs has become the single point of contact for redressal of their complaints, before litigation. Consumers can register their complaints in 17 languages ​​on toll free number 1915. INGRAM, or Integrated Grievance Redressal Mechanism, can register these complaints.

What is INGRAM?

INGRAM is an omni-channel IT enabled central portal. Consumers can lodge complaints as per their interest through WhatsApp, SMS, Mail, NCH App, Web Portal and Umang App. The 1004 companies, which voluntarily participate in the “Convergence” program with NCH, respond to these complaints directly in accordance with their redress process. The complainant returns the response on the portal and sends it to the email ID of the company to resolve the complaints against those companies.

Prior to the litigation, the Department of Consumer Affairs has been successful in ensuring justice for students and candidates appearing for UPSC Civil Services, IIT and other entrance examinations through the National Consumer Helpline (NCH). NCH ​​launched a campaign to resolve these complaints on mission mode after several complaints were lodged with the National Consumer Helpline regarding unfair practices of coaching centres, especially non-refund of enrollment fees.

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