The Central Consumer Protection Authority (CCPA) has fined a ₹5 lakh penalty on Shankar IAS Academy for misleading advertisements linked to the 2022 civil service exam.
“The decision was taken to protect & promote the rights of consumers as a class and ensure that no false or misleading advertisement is made of any goods or services which contravenes the provisions of the Consumer Protection Act, 2019,” an official release issued by Ministry of Consumer Affairs, Food & Public Distribution said.
Led by chief commissioner Nidhi Khare, the regulator discovered that the coaching institute made false claims about its success rate and the nature of courses taken by successful candidates, as per a statement by the consumer affairs ministry.
The refuted “claims” made by Shankar IAS Academy include:
- 336 selections out of 933 at All India Level”
- 40 candidates in Top 100”
- 42 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy”
- Advertising itself as the “best IAS Academy in India”.
However, the CCPA found out that Shankar IAS Academy had “deliberately concealed” information about the specific courses taken by the successful candidates it had advertised for.
“This practice consequently attracts consumers into buying paid courses advertised by the coaching institutes,” the CCPA said in a statement.
The 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. Additionally, the academy claimed credit for candidates who purchased preliminary exam courses after the 2022 exam had already taken place, presumably in preparation for the following year’s test.
The CCPA highlighted that over 1 million candidates apply for the civil services exam annually, which make UPSC aspirants a very vulnerable consumer class for such misleading claims.
This action is part of a wider crackdown on misleading advertisements by coaching institutes, with CCPA having issued notices to numerous other organizations for similar practices.
