IAS coaching centres face closure, license cancellation for false advertising
New Delhi: IAS coaching institutes will face closure and licence cancellation if found violating new guidelines on misleading ads released on Wednesday.
The Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024, hold coaching centres accountable for false claims regarding course duration, which may mislead students into believing they can complete a programme within an unrealistically short timeframe.
Mint was the first to report on 28 November 2023 that IAS coaching institutes would no longer be allowed to use photos of successful candidates to attract potential aspirants.
Coaching institutes will have to give refunds if they fail to deliver the services claimed in their advertisements. Additionally, coaching facilities will be mandated to sign agreements with aspirants for using their credentials only after they have cleared the prestigious exam, giving successful candidates more bargaining power in advertising contracts.
Similarly, the advertisement of free interview guidance programmes, without clear terms and conditions, is prohibited. Institutes must now accurately represent any additional services they offer to avoid creating false expectations, said consumer affairs secretary Nidhi Khare while releasing the new guidelines.
The guidelines also stop exaggerated claims on the number of students who have achieved success in exams after attending the coaching centre. Coaching facilities must now ensure that their success rates are accurate and based on verifiable data.
Coaching institutes will be required to disclose details such as the rank secured, course name and duration alongside the candidate’s photograph. Disclaimers and important information must be displayed prominently, using the same font size as the claims made in the advertisement, it said.
Furthermore, coaching centres are mandated to accurately represent their facilities, resources and infrastructure, and say if their courses are approved by competent authorities such as the All India Council for Technical Education (AICTE) and the University Grants Commission (UGC).
“The new rulebook will serve as a testament to justice for the lakhs of aspirants preparing for civil services, who often find themselves cheated when they fail to receive the services that were advertised,” said Manish K Shubhay, partner at The Precept-Law Offices.
The new guidelines have been issued by the Central Consumer Protection Authority (CCPA), which works under the Department of Consumer Affairs.
Impact on IAS coaching business
The guidelines will have an impact on the IAS coaching business, which accounts for ₹3,000 crore of the ₹58,000 crore coaching industry. Delhi is considered the hub of coaching for the Union government’s civil service examinations.
Recently, the CCPA had issued notices to 45 coaching institutes for violating consumer rights with misleading advertisements and unethical tactics. Of these, 15 have been penalized, with fines totalling ₹38.60 lakh.
The UPSC civil service exam is conducted in three phases. The first phase is the preliminary test (PT), which is a screening test, and the marks obtained in PT are not counted in the next two phases – mains and a personality test.
The marks obtained in both the mains exams and the personality test are counted for final selection. The total marks for the main exams and PT are 1750 and 275, respectively. This means that the contribution of the personality test is 13.5% of the total marks.
