Consumer protection body fines Shankar IAS Academy Rs 500,000 for misleading advertising

New Delhi: The Central Consumer Protection Authority (CCPA) has imposed a Shankar IAS Academy fined 5 lakh for misleading advertisements related to Civil Services Exam 2022.

The regulator, headed by Chief Commissioner Nidhi Khare, found that the training institute made false claims about its success rate and the nature of courses taken by successful candidates, the Ministry of Consumer Affairs said in a statement on Sunday.

Earlier, Mint had reported on 19 August that 15 training institutes had been fined a total of 200,000 euros. 38.60 lakh. Shankar IAS Academy was among those fined, receiving a 5 lakh fine which the institute had not paid till the time of publication.

In its advertisement for the UPSC Civil Services Examination 2022, the institute claimed that there were “336 selected out of 933 at the All India level”, “40 candidates in the top 100” and “2 candidates had passed from Tamil Nadu, out of which 37 studied at Shankar IAS Academy,” the statement said. The institute also promoted itself as the “Best IAS Academy in India”.

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

“This practice subsequently attracts consumers to buy paid courses advertised by training institutes,” Khare said in the statement.

The CCPA investigation revealed that of the 336 candidates who claimed to have passed, 221 had only taken a free interview guidance program, while others participated in multiple short-term or targeted exam components rather than full courses, the statement said.

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

The CCPA noted that over a million candidates appear for the prestigious civil services examination annually, making UPSC aspirants a vulnerable consumer class. It is also preparing guidelines for IAS coaching institutes, which are currently in the final stages of development.

Section 2(28)(iv) of the Consumer Protection Act 2019 addresses misleading advertisements related to deliberate concealment of important information. It highlights that information about the course chosen by successful candidates is crucial for consumers. This transparency enables potential students to make informed decisions when selecting a course and a training institution.

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