CCPA Fines Shubhra Ranjan IAS Study ₹2 Lakh for Misleading UPSC CSE 2023 Result Claims

The penalty was levied to protect consumer rights and ensure adherence to the provisions of the Consumer Protection Act, 2019, which prohibits false or misleading advertisements
CCPA - Shubhra Ranjan IAS Study - Misleading UPSC CSE 2023 - Result Claims - taxscan

The Central Consumer rotection Authority ( CCPA ) has imposed a penalty of ₹2 lakh on Shubhra Ranjan IAS Study for publishing misleading advertisements related to the results of the UPSC Civil Services Examination ( CSE ) 2023.

The penalty was levied to protect consumer rights and ensure adherence to the provisions of the Consumer Protection Act, 2019, which prohibits false or misleading advertisements.

The CCPA, led by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, found that Shubhra Ranjan IAS Study misled consumers through advertisements claiming “13 students in Top 100,” “28 students in Top 200,” and “39 students in Top 300” in UPSC CSE 2023.

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The advertisements prominently featured the names and photographs of successful candidates without disclosing crucial details, such as the specific courses opted for by these candidates or their relevance to the claimed success rates.

The institute offers over 50 courses, but an investigation revealed that most of the successful candidates had enrolled in a Political Science and International Relations ( PSIR ) crash course and test series, which is typically availed after clearing the Preliminary Examination.

By not specifying which course contributed to the candidates’ success, the institute created a false impression that all its courses had similar success rates, thereby misleading prospective students.

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The Consumer Protection Act, 2019, defines misleading advertisements as those that deliberately conceal important information. The CCPA emphasized that consumers have the right to make informed choices, which requires transparency about the specific courses that successful candidates attended. The lack of such disclosures was deemed an unfair trade practice.

Additionally, the institute used terms such as “Shubhra Ranjan IAS” in its advertisements and letterheads, creating a misleading impression that Shubhra Ranjan is or was an IAS officer. This misrepresentation further violated the Consumer Protection Act. The institute claimed this was a clerical error, but the frequent use of such terms indicated otherwise.

The CCPA directed Shubhra Ranjan IAS Study to discontinue the misleading advertisements immediately and pay a penalty of ₹2 lakh.

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This action is part of the CCPA’s broader efforts to control misleading practices by coaching institutes.

On November 22, 2024, the CCPA also fined Vajirao & Reddy Institute ₹7 lakh for false claims about UPSC CSE 2022 results, where the institute falsely attributed the success of 617 candidates to its Interview Guidance Programme, provided free of cost.

To date, the CCPA has issued 45 notices to coaching institutes and imposed penalties totaling ₹63.6 lakh on 20 of them. It has also directed these institutes to discontinue misleading advertisements.

The Department of Consumer Affairs, through the National Consumer Helpline (NCH), has been actively addressing grievances related to unfair practices by coaching centers.

Between September 1, 2023, and August 31, 2024, the NCH resolved complaints from 432 students and facilitated refunds totaling ₹1.15 crore for students affected by such practices, including non-refund of enrollment fees.

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