The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹ 3 lakh on Sriram’s IAS for disseminating misleading advertisements concerning their claimed success in the UPSC Civil Service Exam 2022. The action, aimed at protecting consumer rights, underscores the importance of truthful advertising as per the provisions of the Consumer Protection Act, 2019.
The CCPA, led by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra, found that Sriram’s IAS made false claims in their advertisements, significantly exaggerating the number of successful candidates from their coaching programs. The institute had claimed "200 plus selections in UPSC Civil Service Exam 2022" and touted itself as "India's No.1 Prestigious UPSC/IAS Coaching Institute." However, after an investigation, the CCPA determined that only 171 candidates had actually succeeded, many of whom had not fully participated in the paid courses offered by Sriram’s IAS.
The CCPA’s order highlighted that Sriram’s IAS failed to disclose critical details about the courses attended by the successful candidates. Out of the 171 candidates submitted by the institute, 102 were from a Free Interview Guidance Programme (IGP), 55 from a Free Test Series, 9 from the GS Classroom course, and 5 from various States under an MoU with the State Government for free coaching. The advertisement misleadingly implied that all 200-plus successful candidates had undergone paid coaching at Sriram’s IAS.
The CCPA emphasized that this omission violated Section 2(28)(iv) of the Consumer Protection Act, which defines misleading advertisements as those that deliberately conceal important information. This information is crucial for consumers, particularly UPSC aspirants, to make informed decisions regarding their choice of coaching institutes.
Smt. Nidhi Khare, Chief Commissioner of CCPA, stated, "An advertisement must present a truthful and honest representation of facts, disclosing important information clearly and prominently so that consumers are not misled." She underscored the responsibility of advertisers to uphold consumer rights by providing accurate and complete information.
The CCPA has ordered Sriram’s IAS to immediately cease the dissemination of misleading advertisements and ensure future compliance with the Consumer Protection Act, 2019. This action serves as a reminder to all coaching institutes and educational platforms to maintain transparency in their promotional activities, ensuring that consumers are well-informed and protected against deceptive practices.
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