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CCPA imposes Rs 61.6 lakh penalty on 19 coaching centres for misleading ads

Earlier, CCPA introduced the "Guidelines for Prevention of Misleading Advertisements in the Coaching Sector" to curb false or deceptive claims made by coaching centres in their promotional activities.

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afaqs! news bureau
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CCPA

The Central Consumer Protection Authority (CCPA) has levied a total penalty of Rs 61.6 lakh on 19 coaching institutes for misleading advertisements. Additionally, the CCPA has issued notices to 45 other coaching centres regarding similar violations, mentioned by Press Information Bureau, Government of India.

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On November 13, 2024, the CCPA introduced the "Guidelines for Prevention of Misleading Advertisements in the Coaching Sector" to curb false or deceptive claims made by coaching centres in their promotional activities. The guidelines aim to prevent unfair practices and ensure transparency in the sale of goods and services, Minister of State for Consumer Affairs B.L. Verma informed the Rajya Sabha in a written response.

The National Consumer Helpline (NCH), managed by the Department of Consumer Affairs, serves as a centralised platform for consumers nationwide to address grievances at the pre-litigation stage.

The minister said that these grievances can be registered on the Integrated Grievance Redressal Mechanism (INGRAM), an omni-channel IT-enabled central portal, through various channels- WhatsApp, SMS, mail, NCH app, web portal, Umang app, as per their convenience.

A total of 1,004 companies have voluntarily joined the NCH's 'Convergence' programme and are directly addressing grievances through their own redressal processes. These companies also provide feedback to the complainant via the portal. Complaints against companies not participating in the programme are forwarded to the respective company’s email for resolution, the minister added.

The Department of Consumer Affairs, through the NCH, has effectively stepped in at the pre-litigation stage to address grievances of students and aspirants enrolled in UPSC Civil Services, IIT, and other entrance exams, ensuring timely justice.

Additionally, NCH launched a focused initiative to address numerous complaints against coaching centres, particularly regarding non-refunded enrolment fees. This effort resulted in a total refund of Rs 1.15 crore to affected students.

Established under Section 10 of the Consumer Protection Act, 2019, the CCPA oversees issues related to consumer rights violations, unfair trade practices, and false or misleading advertisements. Its mandate includes promoting, protecting, and enforcing consumer rights as a collective.

The minister stated that the Department of Consumer Affairs is actively focused on consumer protection and empowerment through the implementation of progressive legislation.

To modernise consumer protection laws in the context of globalisation, technological advancements, and e-commerce markets, the Consumer Protection Act, 1986, was replaced by the Consumer Protection Act, 2019.

Central Consumer Protection Authority (CCPA)
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