CCPA imposes ₹15 lakh penalty on Vajirao & Reddy for misleading UPSC results ads

The Central Consumer Protection Authority (CCPA) has imposed a ₹15 lakh penalty on Delhi-based coaching institute Vajirao & Reddy for publishing misleading advertisements relating to UPSC Civil Services Examination (CSE) 2023 results.The Bench of CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra held that the institute’s claims about the number of successful candidates associated with its courses created a misleading impression among aspirants and violated provisions of the Consumer Protection Act, 2019..The order arose from a suo motu case initiated by the CCPA against Vajirao & Reddy over claims published on its website. The institute had advertised:“Over 645 selections out of 1016 vacancies in UPSC CSE 2023” “6 in Top 10 AIR” “35 in Top 50 AIR” “64 in Top 100 AIR".The Authority initiated a preliminary inquiry to examine the authenticity of these claims and sought detailed information regarding the successful candidates, including enrolment details, course duration and fee receipts..After examining submissions and documents, the CCPA found significant discrepancies between the advertised claims and actual enrolment data.According to the investigation:Out of the 645 successful candidates claimed, 431 were not enrolled in any programme offered by the institute. Only 57 candidates had enrolled in an interview course. 33 candidates were enrolled in interview guidance courses. 643 candidates were not enrolled in the main interview programme..The Authority also recorded that the institute failed to furnish key documents such as fee receipts, enrolment forms and scholarship details despite being directed to do so.The CCPA said the advertisements were false and misleading. “In the present case, therefore, the opposite party's conduct despite prior notice, ongoing inquiry, and final order dated 22.11.2024 clearly demonstrates a deliberate and conscious continuation of misleading advertisements on their official website with respect to result of UPSC CSE 2023. Accordingly, the present violation qualifies treatment as a subsequent contravention under Section 21(2), justify imposition of a penalty higher than 10,00,000 in the interest of consumers," it held..The CCPA noted that the advertisements continued to be displayed even after the institute was issued a notice in May 2024. The Authority found that the institute acknowledged lapses and outlined corrective steps but failed to provide verifiable proof of implementation.The Authority concluded that the institute’s conduct showed continued non-compliance and a pattern of misleading advertising..The Authority emphasised that details about the specific courses taken by successful candidates constituted “important information” for prospective UPSC aspirants.Non-disclosure of such information created a misleading impression that successful candidates had enrolled in full-fledged courses offered by the institute..Invoking its powers under the Consumer Protection Act, the Authority directed the institute to pay a ₹15 lakh penalty, cease publication of misleading advertisements and submit a compliance report within 15 days.“The opposite party is directed to pay a penalty of ₹15,00,000 for subsequent contravention and to cease publication of misleading advertisements in future," the February 20 ruling said..[Read Order].Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.