CCPA Issues 20 Notices to IAS Coaching Institutes for Misleading Ads, Imposes Fines On 8 Entities

The Central Consumer Protection Authority (CCPA) has issued 20 notices to IAS coaching institutes for misleading advertisements and imposed penalties on eight such IAS coaching institutes. The information was given by Union Minister of State for Consumer Affairs, Food & Public Distribution Ashwini Kumar Choubey on Wednesday in a written reply to a query in the Lok Sabha.

“The Department of Consumer Affairs is continuously working for consumer protection and empowerment of consumers by enactment of progressive legislations. With a view to modernise the framework governing the consumer protection in the new era of globalization, technologies, e-commerce markets etc Consumer Protection Act, 1986 was repealed and Consumer Protection Act 2019 was enacted,” the Ministry of Consumer Affairs, Food & Public Distribution said in a statement on Wednesday.

Under the Consumer Protection Act, 2019, misleading advertisement in relation to any product or service is defined as an advertisement, which— (i) falsely describes such product or service; or (ii) gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service; or (iii) conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or (iv) deliberately conceals important information.

Under the provisions of the Consumer Protection Act, 2019, the Central Consumer Protection Authority (CCPA) has been established w.e.f July 24, 2020, to regulate matters relating to the violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers as a class.

The CCPA has notified the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 on June 9, 2022. These guidelines inter-alia provide for; (a) conditions for an advertisement to be non-misleading and valid; (b) certain stipulations in respect of bait advertisements and free claim advertisements; and, (c) duties of manufacturer, service provider, advertiser and advertising agency.

The CCPA has issued ‘Guidelines for Prevention and Regulation of Dark Patterns, 2023’ on November 30, 2023, for the prevention and regulation of dark patterns listing 13 specified dark patterns.