CCPA Imposes ₹8 Lakh Penalties Each on Dikshant IAS and Abhimanu IAS for Misleading Advertising and Unfair Trade Practices

The Central Consumer Protection Authority ( CCPA ) has imposed penalties of ₹8 lakh each on Dikshant IAS and Abhimanu IAS, two leading civil services coaching institutes, for engaging in misleading advertisements, unfair trade practices, and violation of consumer rights under the Consumer Protection Act, 2019.

The orders, issued by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, aim to protect UPSC aspirants from deceptive marketing practices that could unduly influence their educational choices.

The CCPA’s inquiry revealed that both institutes had falsely claimed association with these candidates to project exaggerated success rates and attract students. The Authority observed that such conduct violates Sections 2(28) and 2(47) of the Act, as it distorts consumer choice, misleads the public, and erodes trust in educational institutions.

Know How to Prepare Estimation and Viability for Project Reports? Know more Click here

In the case of Dikshant IAS, the complaint by Ms. Mini Shukla (AIR 96, UPSC CSE 2021) stated that her name and image were used in advertisements without her authorization. She clarified that she had never enrolled with Dikshant IAS and had merely attended a mock interview organized by another institution. Despite this, Dikshant IAS advertised “200+ Results in UPSC CSE 2021,” showcasing her photograph among other successful candidates.

The institute failed to substantiate its claim and could produce only 116 enrolment forms against the claimed 200 results. It also failed to furnish any agreement with the associated academy it mentioned in its defence.

The CCPA held that Dikshant IAS deliberately concealed material information about the candidates’ actual courses and misrepresented its contribution to their success, amounting to a misleading and deceptive trade practice.

Similarly, in the case of Abhimanu IAS, a representation from Ms. Natasha Goyal (AIR 175, UPSC CSE 2022)revealed that her name and photograph were used without consent, even though she had never been a student.

The CCPA found that the institute had only shared a question bank based on her Detailed Application Form for a mock interview that never took place. Despite this, the institute featured her in advertisements boasting claims such as “2200+ Selections since Inception,” “10+ Selections in IAS Top 10,” and “1st Rank in HCS/PCS/HAS.”

The Authority’s investigation found these claims to be unsubstantiated and misleading. Of the 139 claimed selections across various competitive exams in 2023, 88 students had cleared the examinations without any involvement of the institute. Many had only attended mock interviews or received question banks.

The CCPA said that such false and exaggerated claims violate consumers’ right to be informed under Section 2(9) of the Act. Concealing material facts and overstating success rates deprive students of the ability to make informed and rational decisions.

The Authority held that such misrepresentation constitutes a serious unfair trade practice, particularly in education, a sector where aspirants invest substantial time, money, and effort based on the credibility of coaching institutions.

Both Dikshant IAS and Abhimanu IAS have been directed to discontinue misleading advertisements and ensure future compliance with the Consumer Protection Act. The CCPA also urged successful candidates to report any unauthorized use of their names or images by coaching centres for promotional purposes.

So far, the CCPA has issued 57 notices to coaching institutes across India for similar violations and imposed penalties totalling ₹98.6 lakh on 27 institutions.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates