Consumer Protection Authority fines Drishti IAS ₹5 lakh for misleading UPSC ad

The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹5 lakh on coaching institute Drishti IAS (VDK Eduventures Pvt. Ltd.) for publishing misleading advertisements that concealed vital information about the nature of courses undertaken by candidates featured in its "216+ selections in UPSC CSE 2022" claim..The order, delivered by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, found that Drishti IAS prominently displayed names and photographs of successful candidates without disclosing that most of them had only taken the institute's free Interview Guidance Programme (IGP), rather than its paid courses..The order was passed in a suo motu case initiated over an advertisement published by Drishti on its website regarding the results of the UPSC CSE 2022. A report submitted in the matter by the Director General (Investigation) found that in the advertisement:Of the 216 claimed selections, 162 candidates (75 per cent) had only enrolled in the free IGP after clearing UPSC prelims and mains on their own without any assistance from the Drishti IAS Institute. Only 54 candidates had taken the IGP along with other courses offered by Drishti, such as the Mains Test Series or Foundation Program..By not disclosing this in the advertisement, the institute created a misleading impression that all 216 students had benefited from its paid coaching, the CCPA ruled. "By presenting an untrue, incomplete and misleading claim, the opposite party has engaged in misleading advertisement, warranting corrective measures By presenting an untrue, incomplete and misleading claim, the opposite party has engaged in misleading advertisement ... it is important to note that this misleading claim was published on the institute’s official website, which significantly increases its reach and influence over consumers across the country. A website is accessible nationwide and even globally, allowing a larger number of consumers to be misled by the false impression created," the September 30 order said. .The authority noted that information regarding courses opted for by successful candidates is critical for consumers to make informed decisions."Information regarding course(s) opted by the successful candidates is an important information for consumers to know so that they can make informed choice while deciding which institute to join and which course to opt for to prepare for UPSC Civil Service exams," the investigation report stated..Represented by Advocate Sumeer Sodhi, the institute argued that:The advertisement had been removed voluntarily. The Interview Guidance Programme is a legitimate and crucial stage of preparation, carrying 275 marks out of 2025 total marks. At the time, no sector-specific guidelines existed to regulate such advertisements. Similar CCPA orders against other coaching institutes had been stayed by the National Consumer Disputes Redressal Commission (NCDRC). The powers of the CCPA under the Consumer Protection Act, 2019, are under challenge before the Delhi High Court..Drishti IAS also submitted that it has begun disclosing the specific courses taken by successful candidates in its subsequent advertisements, starting with UPSC CSE 2023 results..Rejecting the institute’s objections, the Authority invoked Sections 20 and 21 of the Consumer Protection Act, and directed:“In light of the nature of the violations detailed in the foregoing paragraphs including unauthorized use of the name of a successful candidate, it is necessary that the opposite party (Drishti) is directed to pay a penalty of ₹5,00,000 for publishing misleading advertisement. Submit a compliance report … within 15 days of receipt of the Order.”.The CCPA also recalled that in September 2024, Drishti IAS was penalized ₹3 lakh for similar misleading claims relating to “150+ selections in UPSC CSE 2021.” Despite this, the institute continued the practice in 2022, prompting the present penalty..The Authority stressed that the case went beyond numbers and directly touched on consumer rights.“This concealment of important details has affected the ability of potential students (consumers) to make a well-informed choice about which courses to enroll and at what stage of their preparation of Civil Service Examination,” the CCPA held..[Read Order].Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.