CCPA slaps Rs 5 lakh fine on Shankar IAS Academy for misleading ads

PTI, Sep 1, 2024, 6:21 PM IST

The Central Consumer Protection Authority (CCPA) has imposed a Rs 500,000 fine on Shankar IAS Academy for misleading advertisements related to the 2022 civil service exam, the regulator said on Sunday.

The CCPA, led by Chief Commissioner Nidhi Khare, found that the coaching institute made false claims about its success rate and the nature of courses taken by successful candidates.

In its advertisement for the 2022 UPSC Civil Service exam, Shankar IAS Academy claimed “336 selections out of 933 at All India Level”, “40 candidates in Top 100”, and “2 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy”. The institute also advertised itself as the “Best IAS Academy in India”.

However, the CCPA discovered that Shankar IAS Academy “deliberately concealed” information about the specific courses taken by the successful candidates it advertised for.

“This practice consequently attracts consumers into buying paid courses advertised by the coaching institutes,” the CCPA said in a statement.

The regulator’s investigation revealed that out of 336 claimed successful candidates, 221 had only taken a free interview guidance program, while others participated in various short-term or specific exam components rather than full courses, it said.

The academy also claimed credit for candidates who purchased preliminary exam courses after the 2022 exam had already taken place, likely in preparation for the following year’s test.

The CCPA highlighted that over 1 million candidates apply for the prestigious civil services exam annually, making UPSC aspirants a vulnerable consumer class.

This action comes as part of a broader crackdown on misleading advertisements by coaching institutes, with the CCPA issuing notices to numerous organisations for similar practices.

The regulator emphasised the importance of transparent information about courses taken by successful candidates, enabling consumers to make informed choices when selecting coaching programs.