Shankar IAS Academy Penalized ₹5 Lakh for Misleading UPSC Results Advertisement

In a significant move to uphold consumer rights, the Central Consumer Protection Authority (CCPA) has imposed a ₹5 lakh penalty on Shankar IAS Academy. This action comes in response to the academy’s misleading advertisements regarding the UPSC Civil Service Exam 2022 results. The CCPA’s decision highlights the importance of truthful advertising and transparency in coaching institutes. Here’s a detailed look at the CCPA’s ruling and its implications for both consumers and educational institutions.

The CCPA’s Ruling on Shankar IAS Academy

On September 1, 2024, the Central Consumer Protection Authority (CCPA) issued an order against Shankar IAS Academy for its deceptive advertising practices related to the UPSC Civil Service Exam 2022. The CCPA, led by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra, found that the academy’s advertisements contained misleading claims about their students’ success rates.

Misleading Claims in the Advertisement

Shankar IAS Academy’s advertisement boasted:

• “336 selections out of 933 at All India Level”
• “40 candidates in Top 100”
• “42 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy”
• “Best IAS Academy in India”

However, the CCPA discovered that these claims were misleading. The academy had failed to disclose crucial information about the courses that the successful candidates had actually enrolled in. This omission led consumers to believe that all the successful candidates had opted for the paid courses advertised by the academy.

Concealment of Important Information

The CCPA’s investigation revealed that the academy listed 333 successful candidates, not the 336 as claimed. Furthermore, only a fraction of these candidates had taken the paid courses promoted by the academy. Most had participated in free programs or different course combinations. Additionally, there were instances where the academy included candidates who had purchased preliminary courses for future exams, not the 2022 exam.

This deliberate concealment of information violated Section 18 of the Consumer Protection Act, 2019, which mandates that advertisements must not be false or misleading. By failing to disclose the specifics of the candidates’ courses, the academy misled prospective students into believing that their paid courses were responsible for the candidates’ success.

Impact on Consumers and Coaching Institutes

The CCPA’s action underscores the importance of transparency in advertising. With over 10 lakh candidates applying for the UPSC Civil Services Examination annually, it’s crucial that coaching institutes provide accurate and honest information. Misleading advertisements not only deceive prospective students but also distort the competitive landscape of educational institutions.

Regulatory Actions and Future Implications

The CCPA’s decision is part of a broader effort to address misleading advertisements in the coaching industry. Many institutes have been scrutinized for using deceptive tactics, such as featuring successful candidates who did not actually enroll in their paid programs. The CCPA has issued notices to several such institutes, urging them to adhere to truthful advertising practices.

The ₹5 lakh penalty imposed on Shankar IAS Academy serves as a stern warning to coaching institutes across the country. It highlights the need for transparency and accuracy in advertising, ensuring that consumers can make informed decisions based on genuine information. As the CCPA continues to monitor and regulate misleading advertisements, educational institutions must prioritize ethical practices to maintain trust and credibility.

Source: PIB