Shankar IAS Academy fined ₹5 lakh for misleading ads by consumer protection body

New Delhi: The Central Consumer Protection Authority (CCPA) has imposed a ₹5 lakh penalty on Shankar IAS Academy for misleading advertisements related to the 2022 civil service exam.

The regulator, led by chief commissioner Nidhi Khare, found that the coaching institute made false claims about its success rate and the nature of courses taken by successful candidates, according to a statement by the consumer affairs ministry on Sunday.

Earlier, Mint had reported on 19 August that 15 coaching institutes were penalized with a total fine amounting to ₹38.60 lakh. Shankar IAS Academy was among those fined, receiving a ₹5 lakh penalty that had not been paid by the institute till the time of the publication.

The institute in its advertisement for the 2022 UPSC Civil Service exam claimed “336 selections out of 933 at All India Level”, “40 candidates in Top 100”, and “2 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy”, according to the statement. The institute also advertised 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 for.

“This practice consequently attracts consumers into buying paid courses advertised by the coaching institutes,” Khare said in the statement.

The CCPA’s investigation revealed that out of 336 claimed successful candidates, 221 had only taken free interview guidance programme, while others participated in various short-term or specific exam components rather than full courses, the release said.

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

The CCPA highlighted that over 1 million candidates apply for the prestigious civil services exam 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 the 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 coaching institute.