The CCPA, which is the consumer protection regulator, has initiated an investigation into 20 IAS coaching centers over allegations of deceptive advertising practices and unfair trade strategies. These practices involve using the names and images of toppers and successful candidates to influence aspiring IAS candidates.
CCPA Investigates 20 IAS Coaching Centers for Misleading Advertising and Unfair Trade Practices
According to the Chairperson of the Central Consumer Protection Authority (CCPA), Nidhi Khare, four of these coaching centers, namely Rau’s IAS Study Circle, Chahal Academy, IQRA IAS, and IAS Baba, have already been fined Rs 1 lakh each. Notices have been served to the remaining institutes, including Vajirao & Reddy Institute, Khan Study Group IAS, Analog IAS, BYJU’s IAS, Unacademy, NEXT IAS, Drishti IAS, Vision IAS, Yojana IAS, Plutus IAS, ALS IAS, and others.
The penalty was imposed because these institutions deliberately concealed vital information about their successful students. The CCPA has been issuing notices over the last year and a half as part of their investigation.
In typical practice, many coaching institutes engage in extensive advertising campaigns following the release of UPSC exam results. Khare explained that, on average, around 900 students pass the UPSC exam annually out of over 10 lakh candidates. However, the 20 institutes under scrutiny claimed selections that significantly exceeded the UPSC’s recommendations.
CCPA Unearths Deceptive Practices in IAS Coaching Centers and Highlights the Need for Transparency
The CCPA revealed that these institutes were falsely presenting successful candidates as their own students while withholding critical information. The successful candidates may have received coaching from multiple institutes for different subjects and exam stages, which is not being disclosed. Khare emphasized the importance of disclosing the types of courses the successful students took with each institute to protect the interests of aspiring candidates.
She further pointed out that many students waste time and money by enrolling in coaching centers without proper information. Proper disclosure could prevent such deception, she added.
The coaching industry in India currently generates an estimated revenue of approximately Rs 58,088 crore. Every year, about 2 lakh students migrate to Kota in Rajasthan for coaching, with Delhi being considered a major hub for UPSC-CSE coaching.
