The Central Consumer Protection Authority (CCPA) has imposed a fine of ₹8 lakh on Narayana Educational Institutions for releasing misleading advertisements regarding its students’ performance in the JEE Advanced 2024 exam. This decision was delivered by a bench comprising Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra on June 11, 2024.
The CCPA initiated the inquiry suo motu, scrutinizing advertisements disseminated by the educational institution across various platforms, including their website, social media, and notable newspapers such as The Times of India. These advertisements prominently highlighted the top ranks achieved by students in the JEE Advanced 2024.
The authority concluded that the advertisements failed to transparently disclose essential facts concerning the courses taken by the featured successful candidates. The CCPA remarked, “The advertisement is false and misleading inasmuch as it deliberately conceals important information regarding the courses opted for by the successful candidates featured therein, and thereby misleads prospective consumers regarding the nature, scope, and quality of the Institute’s services.”
It was found that the advertisements prominently displayed the names, photographs, and ranks of successful candidates but did not clarify which specific courses these students attended. The CCPA argued that these representations were misleading, as they failed to differentiate between regular students and those enrolled in distance learning or other programs. This distinction is crucial for prospective students and their families to understand the nature of the results, whether they stemmed from full-time classroom coaching, distance learning programs, or short-term courses.
Additionally, the advertisements’ claim of “AIR 1” was not clearly explained as a category rank, potentially leading to confusion among readers. The CCPA dismissed Narayana’s justification that space constraints prevented the inclusion of course details, stating, “The opposite party’s (Narayana Educational Institutions) contention that course details could not be disclosed due to ‘space constraints’ is untenable and devoid of merit. This selective allocation of advertising space, prioritizing promotional content over material disclosure, is indicative of a deliberate omission rather than a logistical constraint.”
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The CCPA noted that the lack of space was not a valid excuse for online advertisements, where ample space is available. It observed that any course information provided was in such small font that it was hard for an average reader to comprehend. The authority further emphasized the potential influence of these advertisements on the vast number of students preparing for competitive exams like the IIT-JEE, stating, “In view of the wide reach and impact of the impugned advertisements, the CCPA is of the opinion that imposition of a penalty on the opposite party is necessary in the interest of consumers.”
As part of corrective measures, the CCPA directed Narayana Educational Institutions to ensure future advertisements include truthful and complete disclosures. Disclaimers must be presented in a font size and manner as prominent as the rank or name of the featured candidate, in compliance with the Consumer Protection Act, 2019, and its associated rules and guidelines.
The institution has been instructed to cease the flagged advertisements immediately and to submit a compliance report within 15 days.
