CCPA imposes Rs 5 lakh fine on Drishti IAS for misleading UPSC selection claims in 2022, exposing false advertisements and lack of transparency in coaching results.
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NEW DELHI: The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹5 lakh on coaching institute Drishti IAS (VDK Eduventures Pvt Ltd) for releasing a misleading advertisement regarding the UPSC Civil Services Examination (CSE) 2022 results.
The institute had claimed “216 selections in UPSC CSE 2022”, but an investigation revealed that the majority of these candidates were only associated with Drishti IAS through its free Interview Guidance Programme (IGP), not through its paid coaching programs.
The CCPA’s September 30 order, delivered by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, highlighted that the misleading advertisement was published on the official website of Drishti IAS, expanding its reach nationwide and even globally.
According to the report of the Director General (Investigation):
- Out of 216 claimed selections, 162 candidates (75%) had only enrolled in the free IGP after clearing Prelims and Mains independently.
- Only 54 candidates were enrolled in IGP along with other paid courses, such as the Mains Test Series or Foundation Program.
By not disclosing this crucial distinction, the advertisement gave a false impression that all 216 candidates had benefited from Drishti IAS’s paid coaching programs.
The Authority noted:
“Information regarding courses opted by successful candidates is critical for consumers to know, so they can make informed choices while deciding which institute or program to join.”
This is the second penalty imposed for similar misleading claims.
In September 2024, the CCPA fined the institute ₹3 lakh for claiming “150 selections in UPSC CSE 2021.” Upon scrutiny, it was found that out of 161 candidates listed by Drishti IAS:
- 148 were from the free IGP
- Only a handful were from mentorship or foundation courses
Despite being penalised once, the institute again exaggerated its role in candidate success, this time increasing its claim to “216 selections.”
Drishti IAS’s Defence
Represented by Advocate Sumeer Sodhi, the institute argued:
- The advertisement had been voluntarily removed.
- IGP is an integral part of UPSC preparation, carrying 275 marks.
- At that time, no sector-specific advertising guidelines existed.
- Similar orders against other coaching institutes were stayed by the NCDRC.
- The powers of the CCPA under the Consumer Protection Act, 2019, are under challenge before the Delhi High Court.
It also submitted that from UPSC CSE 2023 onwards, it has begun disclosing the specific courses taken by successful candidates in its advertisements.
However, the CCPA rejected these objections and, invoking Sections 20 and 21 of the Act, ordered the institute to:
- Pay a fine of ₹5,00,000.
- File a compliance report within 15 days.
As per the Consumer Protection Act, 2019:
- Section 2(28) defines misleading advertisement as one that hides or distorts important information.
- Section 2(9) guarantees consumers the right to make an informed choice.
The Ministry highlighted:
“Advertisements that conceal vital information create false expectations and unfairly influence decision-making, especially in highly competitive exams like UPSC.”
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The CCPA has intensified its scrutiny of coaching institutes:
- 54 notices have been issued so far
- 26 institutes have already been penalised
- Total fines of ₹90.6 lakh have been imposed
- All penalties are accompanied by directions to stop misleading advertisements
Read order: