CCPA fines Narayana Educational Institutions ₹8 lakh for misleading JEE Advanced ads

The Central Consumer Protection Authority (CCPA) recently imposed a penalty of ₹8 lakh on Narayana Educational Institutions for publishing misleading advertisements about its students’ performance in the JEE Advanced 2024 examination..The order dated June 11 was passed by a Bench comprising Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra. The CCPA, which had taken up the matter suo motu, examined advertisements issued by the institute across its website, social media platforms and newspapers, including The Times of India, which highlighted top ranks secured in JEE Advanced 2024. Explaining the basis for its findings on misleading representation, the authority observed,“The advertisement is false and misleading inasmuch as it deliberately conceals important information regarding the courses opted for by the successful candidates featured therein, and thereby misleads prospective consumers regarding the nature, scope, and quality of the Institute's services.” .The CCPA found that the institute prominently showcased the names, photographs and ranks of successful candidates but did not clearly state what courses these students had enrolled in. It further held that the advertisements created a misleading impression by presenting all successful candidates as part of “Narayana Educational Institutions”, without clearly distinguishing between regular students and those enrolled in distance learning or other programmes.The CCPA observed that this information is important for students and parents, as it helps them understand whether the results came from full-time classroom coaching, distance learning programmes or short-term courses.It also noted that the claim of “AIR 1” was not clearly explained as a category rank, which could confuse readers..Rejecting Narayana’s explanation that course details could not be included due to lack of space, the CCPA said, “The opposite party's (Narayana Educational Institutions) contention that course details could not be disclosed due to 'space constraints' is untenable and devoid of merit. This selective allocation of advertising space, prioritising promotional content over material disclosure, is indicative of a deliberate omission rather than a logistical constraint.”The CCPA also noted that even online advertisements did not include these details, despite having no space limitations. It found that some course information was shown in very small font, making it difficult for an average reader to notice..The CCPA further observed that such advertisements can influence lakhs of students preparing for competitive exams like IIT-JEE. “In view of the wide reach and impact of the impugned advertisements, the CCPA is of the opinion that imposition of a penalty on the opposite party is necessary in the interest of consumers,” it said..Directing corrective steps, the CCPA said, “The opposite party (Narayana Educational Institutions) shall, in all future advertisements, make truthful and complete disclosure and disclaimers shall be presented in a font size and manner no less prominent than that used for the rank or name of the featured candidate, so as to be clearly legible to an ordinary consumer, in compliance with the Consumer Protection Act, 2019 and the rules and guidelines made thereunder.”The institute has also been directed to discontinue the flagged advertisements immediately and submit a compliance report within 15 days..[Read Order]