Sriram’s IAS Coaching Institute Under Scanner: Rs 3 Lakh Penalty Imposed for Misleading Advertisement in UPSC 2022 Results

New Delhi: The Central Consumer Protection Authority (CCPA) on Sunday informed that it has imposed a penalty of Rs 3 lakh on Sriram’s IAS coaching institute for misleading advertisement on UPSC Civil Services(CSE) results 2022. The decision was taken to protect and promote the rights of consumers as a class and ensure that no false or misleading advertisement is made of any goods or services that contravenes the provisions of the Consumer Protection Act, 2019.
“In view of the violation of the Consumer Protection Act, 2019, the CCPA, headed by Chief Commissioner, Smt. Nidhi Khare, and Commissioner, Shri Anupam Mishra has issued an Order against Sriram’s IAS for misleading advertisement regarding UPSC Civil Service Exam 2022,” reads the order.
Furthermore, it stated that the Coaching Institutes and online edtech platforms use pictures and names of some successful candidates to influence prospective aspirants (consumers), without disclosing the courses opted by such candidates and the length of the course so attended. According to the press release, Sriram’s IAS in its advertisement made the following:-

“200 plus selections in UPSC Civil Service Exam 2022”
“We are India’s No.1 Prestigious UPSC/IAS Coaching Institute”

The Central Consumer Protection Authority (CCPA) found out that Sriram’s IAS advertised various types of courses but the information with respect to the course opted by the advertised successful candidates in above mentioned UPSC Civil Service exams results was deliberately concealed in the advertisement. This led consumers to mistakenly believe that all the successful candidates so claimed by the Institute had enrolled in the paid courses advertised on its website.
“Section- 2(28) (iv) of Consumer Protection Act talks about misleading advertisement in relation to deliberately concealing important information. Information regarding the course opted by successful candidates is important for the consumers to know so that they can make informed choice while deciding which course and coaching institute to join,” reads the statement.
Sriram’s IAS, in its response, provided details of only 171 successful candidates, contrary to its claim of over 200 selections in the UPSC Civil Services 2022. Of these 171 candidates, 102 were from the Free Interview Guidance Programme (IGP), 55 from the Free Test Series, 9 from the GS Classroom course, and 5 from various states under an MoU with the State Government for free coaching. This information was not disclosed in their advertisement, thereby misleading consumers.
It is a well-known fact that successful candidates of Civil Services Examination have to clear all the 3 stages of Exams. Viz., Prelims, Main Exams and Personality Test (PT). While Prelims is a screening test, the marks obtained in both Mains Exams and Personality Test are counted for getting finally selected. The total marks for Main Exams and PT are 1750 and 275 respectively. Thus contribution of Personality Test is 13.5% in the total marks.
“Majority of candidates had already cleared Preliminary and Mains examination by himself/herself, with no contribution of Sriram’s IAS. By concealing this important fact, such false & misleading advertisement creates huge impact on those consumers who are UPSC aspirants without letting them know that Sriram’s IAS had offered guidance to only such successful candidates who had already cleared Preliminary and Mains examination of UPSC examination. Thus, the advertisement has violated the consumer’s right to be informed so as to protect himself against unfair trade practice,” reads the statement.
The authority emphasized that the advertisement shall contain truthful & honest representation of facts by disclosing important information in such a manner that they are clear, prominent and extremely hard to miss for consumers.