The Central Consumer Protection Authority (CCPA) has taken action against Sriram’s IAS, a leading coaching institute, for making misleading claims about their results in the UPSC Civil Services Exam 2022. The CCPA levied a penalty of ₹3 lakh on the institute following complaints that their advertisements presented a distorted picture of their success rate.
The investigation revealed that Sriram’s IAS, while promoting various courses, strategically concealed information about the specific courses taken by students who cleared the 2022 exam. This deliberate omission led consumers to believe that all successful candidates had enrolled in the paid courses advertised on their website.
The institute’s advertisements boasted “200+ selections in UPSC Civil Service Exam 2022” and claimed to be “India’s No.1 Prestigious UPSC/IAS Coaching Institute.” However, further scrutiny revealed that only 171 successful candidates were disclosed. Out of these, 102 were from the free interview guidance program (IGP), 55 from the free test series, nine from the general studies classroom course, and five from free coaching under a state government scheme. This crucial detail was not disclosed in their advertising, misleading consumers.
The CCPA, emphasizing the importance of truthful advertising, stated that advertisements must clearly display all relevant information for consumers to make informed decisions.
The issue of exaggerated success claims in the coaching industry is not new. Coaching institutes often cherry-pick exceptional cases and use testimonials to create a perception of higher success rates than reality. This practice has led to increased scrutiny from consumer protection authorities.
The CCPA’s action against Sriram’s IAS underscores the importance of transparency and accountability in the coaching industry. The ministry is also preparing detailed guidelines to curb misleading ads, aimed at ensuring fair practices and protecting consumers from deceptive marketing tactics.
The IAS coaching sector holds a significant share of the overall coaching industry, valued at ₹58,088 crore, with Delhi serving as a hub for UPSC coaching. The draft rules aim to prevent coaching centers from making false claims like guaranteeing 100% selection and discourage them from presenting a skewed impression of success by highlighting exceptional cases.
