New Delhi : The Central Consumer Protection Authority (CCPA) has imposed penalties on two coaching institutes for misleading advertisements and unfair trade practices under the Consumer Protection Act, 2019. A fine of ₹10 lakh was imposed on Motion Education Pvt. Ltd., while Career Line Coaching (CLC), Sikar, was fined ₹5 lakh for violating consumer rights through deceptive promotional practices.
The action was taken by the CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, after it found that both institutes had published advertisements highlighting the achievements of successful IIT-JEE and NEET candidates without disclosing crucial details about the actual courses attended by those students.
In the case of Motion Education, the institute advertised impressive success ratios and top ranks in JEE and NEET examinations across its website, social media platforms and newspaper advertisements. The CCPA observed that the institute prominently promoted the achievements of selected candidates alongside its paid classroom and residential programmes, while concealing the fact that many of those students were enrolled in its “I-Eklavya” programme — a special merit-based batch offered free of cost to selected students.
The investigation conducted by the Director General (Investigation) further revealed that some students featured in the advertisements had joined the institute only after the examinations were conducted, leading to false attribution of their success for promotional gains. The Authority also noted that names and photographs of certain students were used without obtaining proper consent from them or their guardians.
The CCPA held that Motion Education failed to substantiate several claims made in its advertisements despite repeated opportunities to provide documentary proof. It ruled that suppression of important information regarding the nature of courses undertaken by successful candidates amounted to misleading advertisement and unfair trade practice under the Consumer Protection Act, 2019.
Similarly, Career Line Coaching (CLC), Sikar, was found guilty of publishing misleading advertisements regarding student selections and ranks in medical and engineering entrance examinations. The institute claimed achievements such as “1650+ CLCians in MBBS, IIT & Others” and multiple top AIR ranks, while allegedly hiding the fact that several featured students had enrolled only for test series programmes rather than full-time coaching courses.
The investigation found that CLC failed to produce documentary evidence supporting its claims and also gave contradictory explanations regarding the “1650+ selections” claim. While the institute initially stated that the figure represented cumulative selections since 1996, it later claimed the data pertained only to the year 2024. The CCPA termed the claim misleading and unsubstantiated.
The Authority also observed that both coaching institutes failed to prove that written consent had been obtained from successful candidates after declaration of results, as required under the Guidelines for Prevention of Misleading Advertisement in Coaching Sector, 2024.
The CCPA directed both institutes to immediately discontinue such advertisements, refrain from publishing misleading promotional content in future and ensure truthful disclosures in all future campaigns. However, both institutes have challenged the CCPA orders before the National Consumer Disputes Redressal Commission (NCDRC).
The Authority stated that misleading advertisements violate consumers’ right to accurate information and particularly affect students and parents who invest substantial resources in competitive exam preparation. It added that hiding details about whether successful students attended full-time coaching, online programmes, crash courses or only test series amounts to misleading advertising under the law.
According to the CCPA, more than 60 notices have so far been issued to coaching institutes for misleading advertisements and unfair trade practices. Following investigations, penalties exceeding ₹1.39 crore have been imposed on 31 coaching institutes involved in coaching for UPSC, IIT-JEE, NEET, RBI and other competitive examinations.