CCPA issued 20 notices to IAS coaching institutes for misleading ads

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

The Minister said that the Department of Consumer Affairs is continuously working for consumer protection and empowerment of consumers through the enactment of progressive legislation. With a view to modernising the framework governing consumer protection in the new era of globalization, technologies, e-commerce markets etc Consumer Protection Act, of 1986 was repealed and the Consumer Protection Act of 2019 was enacted.

Under the Consumer Protection Act, 2019, misleading advertisement in relation to any product or service is defined as an advertisement, that-- (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 with effect from 24.07.2020 to regulate matters relating to the violation of rights of consumers, unfair trade practices and false or misleading advertisements that 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 9th June 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 issued "Guidelines for Prevention and Regulation of Dark Patterns, 2023" on 30th November, 2023 for the prevention and regulation of dark patterns listing 13 specified dark patterns, said Choubey.