The Central Consumer Protection Authority (CCPA) found Drishti IAS guilty of misleading advertisements and imposed penalties, directing discontinuation of the offending ads.
The suo motu action by CCPA was initiated against Drishti IAS for prominent advertisements on its website claiming “216+ selections in UPSC CSE 2022” without disclosing which courses the successful candidates took. The CCPA alleged concealment of material information under Sections 2(28) and 2(9) of the Consumer Protection Act, 2019, and violation of the Guidelines for Prevention of Misleading Advertisements.
The CCPA had previously taken similar action for Drishti’s “150+ selections in UPSC CSE 2021” advertisements, imposing a Rs. 3 lakh penalty and directing modification of the advertisement. Despite this, Drishti IAS continued with similar non-specific claims for 2022, prompting fresh investigation and order.
Drishti IAS claimed 216+ UPSC 2022 selections using names, photos, and ranks of successful candidates in its advertisements, and promoted multiple courses. Upon investigation, it was revealed that 162 of these candidates had only attended a free Interview Guidance Program (after clearing Prelims and Mains elsewhere), which was not disclosed in the advertisement. Only 54 candidates had taken any paid course/coaching from the institute.
Drishti IAS argued that there were no sector-specific guidelines at the time, and that the course detail wasn’t material.
The Bench comprising Mrs. Nidhi Khare, Chief Commissioner, and Mr. Anupam Mishra, Commissioner, found Drishti IAS in clear violation of sections 2(28), 2(9), and fair disclosure norms, holding that omission of the course detail was material to consumer choice, as the “success rate” was wrongful and exaggerated. It expressly rejected Drishti’s argument that lack of guidelines barred penalty, stating the 2019 Act empowered CCPA on general principles irrespective of sector.
In result, Drishti IAS was ordered to discontinue all misleading advertisements and imposed with appropriate penalty. The order expressly required that all future advertisements state clearly the exact courses and stage attended by successful candidates. CCPA underlined that failure to comply with the disclosure rules could attract even steeper penalties for subsequent non-compliance.
Appearances:
For Drishti IAS: Mr. Sumeer Sodhi, Advocate; Mr. Kartikay Garg, Advocate
