Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 5 lakh for a misleading advertisement on Shankar IAS Academy. Last month CCPA had imposed penalty of Rs 3 lakh on Sriram's IAS coaching for similar offence.
“The decision was taken to protect and promote the rights of consumers as a class and ensure that no false or misleading advertisement is made of any goods or services that contravenes the provisions of the Consumer Protection Act, 2019,” said CCPA chief Nidhi Khare, who is also the secretary of union ministry for consumer affairs.
The penalty was imposed under Section 18 of the Act, which empowers the CCPA to ensure that no such false or misleading advertisement is made.
Earlier, Shankar IAS Academy made the following claims with respect to the UPSC Civil Service examination in its advertisement:
- 336 selections out of 933 at All India Level
- 40 candidates in Top 100
- 42 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy
- Best IAS Academy in India
According to the CCPA, it was found that Shankar IAS Academy advertised various types of courses but the information with respect to the course opted by the advertised successful candidates in above mentioned UPSC Civil Service exam results was deliberately concealed in the advertisement.
“This has the effect of consumers falsely believing that all the successful candidates so claimed by the Institute had opted for the paid courses advertised by the Institute on its website. In other words, this practice consequently attract consumers into buying paid courses advertised by the coaching institutes,” the authority said.
What Shankar IAS Academy says?
Shankar IAS Academy in its response submitted the details of only 333 successful candidates against its claim of 336 plus selections in UPSC CSE 2022. Out of 336 claimed students, 221 took Free Interview Guidance Programme, 71 took Mains Test Series, 35 took Prelims Test Series, 12 took General Studies Prelims cum Mains, 4 took Prelims Test Series with Some other mains course (optional and/or GS).
CCPA verdict
“This fact was not disclosed in their advertisement, thereby deceiving consumers. By concealing this important fact, such false and misleading advertisement creates huge impact on those consumers who are UPSC aspirants without letting them know that Shankar IAS Academy role in candidates' success. Thus, the advertisement has violated the consumer's right to be informed so as to protect itself against unfair trade practice,” the CCPA noted.
The CCPA also found that in 18 instances where candidates bought Preliminary courses from Shankar IAS Academy, the commencement date of the course on the receipt was mentioned as October 9, 2022, but the preliminary examination of UPSC CSE had already been conducted on June 5, 2022, and the result declared on June 22, 2022, which could only mean that these candidates bought Preliminary course for next UPSC CSE prelims exam (2023).
The BuckStopper, run by a group of seasoned journalists, holds the powerful accountable. The buck stops with them, as they cannot shrug off their official responsibilities.
