Context: The Union Ministry of Consumer Affairs recently discussed draft guidelines to protect consumer rights and prevent false or misleading advertisements violating the Consumer Protection Act, 2019. This follows instances of coaching institutes using misleading ads to attract job and entrance exam aspirants. The Central Consumer Protection Authority (CCPA) had previously taken suo moto action against such misleading ads, issuing notices to 31 coaching institutes and imposing fines on 9 for their misleading advertisements.
The committee responsible for formulating these guidelines is led by the Secretary of the Department of Consumer Affairs, in collaboration with the Chief Commissioner of CCPA. Other members of the committee consist of the Commissioner (CCPA) and representatives from various organizations such as the Department of Personnel & Training (DoPT), Ministry of Education, National Law University (NLU) in Delhi, FIITJEE, Khan Global Studies, Ikigai Law, and several others.
The draft guidelines state that
- Misleading Advertisement Situations under Consumer Protection Act 2019: The Guidelines specify situations in which an advertisement from a coaching institute can be considered misleading under the Consumer Protection Act 2019. This includes situations where important information about the courses chosen by successful candidates (whether free or paid), as well as the course duration, is concealed.
- Prohibited Claims by Coaching Institutes: Coaching institutes shall not make 100 per cent selection or 100 per cent job guaranteed or guaranteed preliminary or mains with regards to the UPSC exam process.
- Mandatory Details in Promotional Advertisements: The guidelines also specify the necessary details that must be included in promotional advertisements alongside photos of successful candidates. Coaching institutes must provide information about the candidate's ranking, the chosen course, the course duration, and whether it was a paid or free course.
- Applicability to All Coaching Institutes: Once finalised, the guidelines will be applicable to all the coaching institutes, whether online or physical and cover all forms of advertisement regardless of form, format or medium.
- Penalties for Misleading Advertisements: The penalty for misleading advertisements by the coaching sector will be governed as per Consumer Protection Act, 2019 and the guidelines will be issued to provide clarification to the stakeholders
About Central Consumer Protection Authority
- Central Consumer Protection Authority is an authority provided by the Consumer Protection Act, 2019 which was to be notified by the Central Government.
- Aim: to regulate unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and to promote, protect and enforce the rights of consumers as a class.
- Composition: CCPA consists of a Chief Commissioners and Commissioners who are appointed by Central Government.
- CCPA has an investigation wing headed by Director General for conducting inquiry or investigation under the Consumer Protection Act, 2019.
- District Collector may, on a complaint or a reference made to him by CCPA or Commissioner of a regional office, inquire into or investigate complaints regarding violation of rights of consumers as a class, violation of consumer rights, unfair trade practices and false or misleading advertisements, within his jurisdiction and submit his report to CCPA or Commissioner of a regional office.
- Functions of Central Consumer Protection Authority are:
- Protect, promote and enforce rights of consumers as a class and prevent violation of consumer rights under the Consumer Protection Act, 2019.
- Prevent unfair trade practices and ensure that no person engages himself in unfair trade practices.
- Ensure that no false or misleading advertisement is made of any goods or services which contravenes the provisions of Consumer Protection Act, 2019.
- Ensure that no person takes part in publication of any advertisement which is false or misleading.
- Inquire or investigate into violations of consumer rights or unfair trade practices, either suo moto or on a complaint or on directions of central government.
- File complaints before District Commission, State or National Commission as the case may be under the Consumer Protection Act, 2019.
- Intervene in any proceedings before district, State or National Commission in respect of any allegation of violation of consumer rights of unfair trade practice.
- Review matters relating to inhibition of enjoyment of consumer rights and recommend remedial measures for their effective implementation.
- Recommend adoption of international covenants and best international practices on consumer rights to ensure effective enforcement of consumer rights.
- Undertake and promote research in the field of consumer rights.
- Spread and promote awareness on consumer rights.
- Encourage NGOs and other institutions working in the field of consumer rights to cooperate and work with consumer protection agencies.
- Mandate the use of unique and universal goods identifiers in such goods to prevent unfair trade practices and to protect consumers’ interest.
- Issues safety notices to alert consumers against dangerous or hazardous or unsafe goods or services.
- Advise Ministries and Departments of Central and State Governments on consumer welfare measures.
- Issue necessary guidelines to prevent unfair trade practices and protect consumers’ interest.