India’s Consumer Protection Authority Penalizes IQRA IAS Institute for Misleading Advertising

The Central Consumer Protection Authority imposes a ₹1,00,000 penalty on IQRA IAS Institute for false advertising and unfair trade practices related to misleading testimonials.

New Delhi (Agency): The Central Consumer Protection Authority (CCPA) of India has imposed a fine of ₹1,00,000 on IQRA IAS Institute for misleading advertisements and violating the Consumer Protection Act, 2019. Headed by Chief Commissioner Smt. Nidhi Khare and Commissioner Shri Anupam Mishra, the CCPA took action against the coaching institute based on complaints about false claims on their website.

IQRA IAS Institute, established in 2018, had advertised misleading testimonials of candidates who secured top ranks in the UPSC Civil Services Exam for the years 2015 and 2017. The claims were factually incorrect and deceived consumers into believing that these successful candidates were students of the institute.

In response to the notice issued by the CCPA, the institute claimed that its faculty in Pune and Kanpur are highly qualified, and its test series for the UPSC exams in 2020 had received a Google rating of 4.6 out of 5. While the institute has since removed the misleading information from its website, the investigation confirmed that the testimonials were false and aimed to mislead consumers.

The CCPA aims to protect the rights of consumers and has specific guidelines to prevent misleading advertisements. These guidelines, updated in 2022, specify that advertisements should not exaggerate the usefulness of the products or services. They also mandate that advertisements should not hide important information that would make the claim deceptive.

IQRA IAS Institute failed to include any disclaimer on its website and was unable to substantiate other claims made in its advertising. According to CCPA, the absence or omission of material information is considered deceitful and violates consumer rights.

The action against IQRA IAS Institute is part of a broader framework to safeguard consumer rights and interests. In November 2022, the department also introduced a framework on Online Consumer Reviews to curb fake, deceptive, and misleading reviews.

The CCPA’s action in imposing the fine and ordering the removal of false claims from IQRA IAS Institute’s website serves as a warning to other educational institutes and businesses about the consequences of misleading advertising and unfair trade practices.

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