Coaching centers can’t use misleading ads: draft guidelines

• The Central Consumer Protection Authority (CCPA), has released draft guidelines for the “Prevention of misleading advertisement in coaching sector

Key Highlights

• The Central Consumer Protection Authority (CCPA) is an arm of the Union Consumer Affairs Ministry,
• It will bring such offenses under the radar of the Consumer Protection Act.
• Such guidelines were initiated after widespread complaints against certain coaching centers for
  • Making false claims without acknowledging the individual efforts of the students and creating a false sense of urgency
  • fear of missing out that may heighten anxieties amongst students, or parents will be considered as misleading under the new guidelines.

Central Consumer Protection Authority (CCPA)

• CCPA is a regulatory body established in 2020 based on the provisions of the Consumer Protection Act, 2019.
• It will have a Chief Commissioner as head, and only two other commissioners as members
• The CCPA will have an Investigation Wing that will be headed by a Director General.
• District Collectors too, will have the power to investigate complaints of violations of consumer rights, unfair trade practices, and false or misleading advertisements.
• It will Inquire or investigate matters relating to violations of consumer rights or unfair trade practices suo moto
• or on a complaint received, or on a direction from the central government.
  • Pass an order for refund the prices of goods or services so recalled to purchasers of such goods or services
• discontinuation of practices which are unfair and prejudicial to consumer’s interest”.
  • Impose a penalty up to Rs 10 lakh, with imprisonment up to two years, on the manufacturer or endorser of false and misleading advertisements.

Prelims Takeaway

• CCPA
• Consumer Protection Act