CCPA fines coaching institutes over misleading IIT-JEE, NEET success claims

The Central Consumer Protection Authority (CCPA) has taken action against two major coaching institutes, Motion Education and Career Line Coaching (CLC), for allegedly misleading students through exaggerated success claims in advertisements related to competitive examinations.

The orders were issued by CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra.

According to a statement released by the consumer affairs ministry on May 15, both institutes were found in violation of the Consumer Protection Act, 2019, for unfair trade practices and infringement of consumer rights.

The investigation found that Motion Education widely promoted a 91.2% NEET qualification rate and a 51.02% IIT-JEE Advanced success rate across digital and print platforms, including its website, YouTube channel, Instagram account, and newspaper advertisements.

The advertisements prominently displayed names, photographs, and ranks of successful candidates while promoting paid coaching programs such as the “Full Time Classroom Programme,” “Residential Programme," “Nurture Batch," “Enthuse Batch," and “Dropper/Leader Batch."

However, investigators found that many of the featured students had actually enrolled in “I-Eklavya (Online)," a free course offered to selected students through an entrance test and interview process. The advertisements reportedly did not disclose this information.

Authorities also found instances where students were associated with the institute only after completing their examinations, but their achievements were still attributed to the coaching center.

The investigation further noted that consent had not been obtained from students or guardians before using their names and photographs in advertisements.

Career Line Coaching came under scrutiny for advertising “1650+ CLCians in MBBS, IIT & Others."

During written submissions, the institute reportedly described the figure as the cumulative number of selections since 1996. However, during the hearing, it claimed the figure referred only to selections made in 2024.

The CCPA said the contradiction made the claim unsubstantiated.

The authority also found that several students featured in CLC advertisements had enrolled only for test series programs rather than full-time coaching courses.

According to the regulator, the institute failed to disclose this distinction in its promotional material.

The CCPA held that hiding whether students attended full-time classes, online courses, crash courses, or only test series programs amounts to a misleading advertisement under Section 2(28) and an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019.

Both coaching institutes have been instructed to immediately remove the disputed advertisements and ensure complete disclosure in future promotional campaigns.

The institutes have challenged the orders before the National Consumer Disputes Redressal Commission (NCDRC). The action forms part of a broader crackdown on misleading advertisements by coaching centers across the country.

According to the consumer affairs ministry, the CCPA has issued more than 60 notices to coaching institutes so far and imposed penalties exceeding ₹1.39 crore on 31 institutions offering coaching for UPSC, IIT-JEE, NEET, RBI, and other competitive examinations.