IAS coaching centers are facing closure and cancellation of licenses due to false advertisements

The Guidelines for Prevention of Misleading Advertising in Coaching Sector, 2024, holds coaching centers accountable for false claims about course duration, which can mislead students into believing they can complete a program in an unrealistically short time frame.

Mint was the first to report on November 28, 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 issue refunds if they fail to provide the services claimed in their advertisements. Additionally, coaching facilities will be mandated to sign agreements with aspirants for the use of their credentials only after they clear the prestigious exam, giving successful candidates more negotiating power when advertising contracts.

Advertising free interview guidance programs without clear conditions is also prohibited. Institutes must now accurately reflect any additional services they offer to avoid creating false expectations, Consumer Affairs Minister Nidhi Khare said while releasing the new guidelines.

The guidelines also put an end to exaggerated claims about the number of students who 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 are required to disclose details such as rank obtained, course name and duration along with the candidate’s photo. Disclaimers and important information should be displayed prominently, with the same font size as the claims in the advertisement, the report said.

Moreover, coaching centers are mandated to accurately display their facilities, resources and infrastructure, and whether their courses have been approved by relevant authorities such as the All India Council for Technical Education (AICTE) and the University Grants Commission (UGC).

“The new rule book will serve as a testament to justice for the many aspirants preparing for government services, who are often cheated when they fail to receive the services 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 falls under the Ministry of Consumer Affairs.

Impact on IAS coaching activities

The guidelines will have an impact on the IAS coaching activities, which will be taken into account ₹3,000 crore of the ₹58,000 crore coaching industry. Delhi is considered as the center of coaching for the Union Government civil service exams.

Recently, the CCPA had issued notices to 45 coaching institutes for violating consumer rights with misleading advertisements and unethical tactics. Of these, 15 were punished, with a total of fines ₹38.60 lakhs.

The UPSC civil services exam is conducted in three phases. The first stage is the Preliminary Test (PT), a screening test, and the marks obtained in PT are not counted in the next two stages: the main test and a personality test.

The marks obtained in both the main exam and the personality test count towards the 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 mark.