Ministry of Consumer Affairs has released draft guidelines to curb misleading ads by private coaching centers targeting students. Coaching centers accused of making exaggerated claims to lure students despite poor results. Guidelines call for transparent and accurate advertising as per Consumer Protection Act 2019.
Key Recommendations
- Advertisements must provide clear information on:
- Fees structure and refund policies
- Previous years’ student outcomes
- Proper discernment between actual and projected data
- Banning ads promoting unrealistic promises or guarantees for admissions/jobs
- Strict verification rules for testimonials and rankings claims used in ads
Examples of Misleading Claims
Some common misleading statements used by coaching centers:
- “100% admission guarantee” – Gives unrealistic expectations
- “Top Faculty in Country” – Cannot be objectively proven
- Showing a third-tier college as a top institute
- Fake student testimonials and tampered results
To curb such statements, ads should present actual data and achievements objectively without exaggerations.
Draft Policy Highlights
Advertisement Content
- Comparison with Competitors: Should be factual without denigrating other institutes
- Guarantees: Banned in all forms
- Rankings & Awards: Must cite verifiable sources; Year/category must be specified
Past Performance
- Show success ratio of past students as percentage or fraction
- Provide actual institute average and compare with state/national level data
Finances
- Fees structure must detail course costs, additional charges and refund rules
Enrollment Stats
- Display updated student enrollment numbers accurately
Penalties Violators may face
- Financial penalties
- Ban on advertising activities
- Removal of recognition
Initiative Support Expected from
- Ed-tech advertising councils & government consumer protection forums
- Industry associations like Indian Coaching Federation
- Student & parent advocacy groups
Significance of Guidelines
The guidelines aim to enforce accountability and transparency, enabling students to make informed decisions. Strict adoption is vital for rebuilding fair practices in the $20 billion Indian coaching industry amid rampant issues like:
- Questionable advertising tactics
- Lack of outcome-based accountability
- Large fee burdens on students
Key Problem Areas in Indian Coaching Sector Advertising
| Issue | Percentage of Institutes at Fault |
| Exaggerated Guarantees | 74% |
| Dubious Ranking Claims | 69% |
| Tampered Result Data | 61% |
| Obfuscated Fee Details | 55% |
Key Problems in Indian Coaching Industry Advertising
- Exaggerated Guarantees: 74% institutes
- Dubious Ranking Claims: 69% institutes
- Tampered Result Data: 61% institutes
- Obfuscated Fee Details: 55% institutes
Proposed Remedies
- Mandatory Fee and Refund Disclosure
- Past Year Result Verification Rule
- Ban on “Guaranteed Admissions” Claim
- Random Audits for Ranking and Awards Claims
- Form Consumer Complaint Review Body
International Perspective
- Australia: Prioritizes accurate qualification & course details
- UK: Strict CAP code enforced by Advertising Authority
- Singapore: Fee transparency and quality course information required
- India guidelines bring Indian policy closer to global standards
Comparison with Other Sectors
- India’s coaching sector lacks transparency standards followed in education, healthcare, financial services and e-commerce entities.
- Regulatory discrepancy allows dubious advertising practices.
- Guidelines significiant step towards bridging the policy gap.
Alternatives to Commercial Coaching
Self-Study Options
-
- Utilize free content from MOOCs, YouTube creators, official syllabus guides
- Form peer study groups for collaborative learning
Government Programs
-
- Schemes like New Education Policy’s Academic Bank of Credits to allow credit transfers between institutes
- Proposed National Tutoring Programme to provide affordable after-school tutoring
Non-Profit Organizations
-
- Khan Academy provides free test preparation and academic resources
- EdAid focuses on equal access to coaching through scholarships and subsidies
School-Led Coaching
-
- Schools can provide integrated test prep through trained in-house faculty
- Reduces need for external coaching enrollment
Regulation of Private Tutoring
-
- Policies restricting after-school coaching hours to reduce student pressure
- China, South Korea examples: Bans on tutoring during weekends/holidays
- While alternatives can supplement learning, regulated private coaching continues to have an important role in competitive exam prep.
- Effective guideline enforcement coupled with affordable self-study options can balance student support without over-reliance on any one channel.
- The central guidelines will enable state regulators and consumer courts to monitor coaching centers claims more effectively across India under Consumer Protection law.
- Effective compliance can help streamline the coaching sector to focus efforts on delivering actual student outcomes instead of promotional gimmicks.
