CCPA imposes Rs 5 lakh penalty on Drishti IAS for misleading ads

New Delhi: The Central Consumer Protection Authority (CCPA) has imposed a penalty of Rs 5 lakh on Drishti IAS (VDK Eduventures Pvt Ltd) for publishing misleading advertisements regarding the results of the UPSC Civil Services Examination (CSE) 2022.

Drishti IAS, in its advertisement, prominently claimed "216+ selections in UPSC CSE 2022" along with names and photographs of successful candidates.

However, upon examination, CCPA found that the claim was misleading and concealed crucial information regarding the type and duration of courses opted for by these candidates, the Consumer Affairs Ministry said in a statement.

The investigation revealed that out of the 216 candidates claimed by Drishti IAS, as many as 162 candidates (75 per cent) had only taken the free Interview Guidance Programme (IGP) of the institute, after independently clearing the Preliminary and Mains stages of UPSC CSE. Only 54 students were enrolled in IGP and other courses.

This deliberate concealment of important information misled aspirants and parents into believing that Drishti IAS was responsible for their success in all stages of the UPSC examination, which is a misleading advertisement under Section 2(28) of the Consumer Protection Act, 2019.

CCPA also noted that this is the second penalty imposed on Drishti IAS for similar conduct. Earlier, in September 2024, the authority had passed a final order against Drishti IAS for its misleading claim of "150+ selections in UPSC CSE 2021".

The institute submitted the details of 161 candidates, exceeding its claim of 150+ selections in UPSC CSE 2021.

In that case too, it was found that out of these 161 candidates, 148 were enrolled in IGP, seven were enrolled in Mains Mentorship Program, four were enrolled in GS Foundation Program, one in Optional course and the details of the remaining one candidate were not mentioned.

The CCPA imposed a penalty of Rs 3 lakh and directed the discontinuation of the misleading advertisement.

Despite being penalised and cautioned earlier, Drishti IAS once again indulged in the same practice for the 2022 examination results by enhancing its claim to "216+ selections", thereby showing repeated non-compliance and disregard for consumer protection norms.

The concealment of such crucial information deprived prospective students and parents of their right to make an informed choice, as per Section 2(9) of the Consumer Protection Act, 2019.

"Such advertisements create false expectations and unfairly influence consumer decisions, particularly when large claims are made without transparent disclosure of facts," the ministry said.

So far, the CCPA has issued 54 notices to various coaching institutes for misleading advertisements and unfair trade practices. Penalties amounting to over Rs 90.6 lakh have been imposed on 26 coaching institutes, along with directions to discontinue such misleading claims.

The CCPA noted that all such institutes concealed important information regarding the courses opted for by successful candidates in their advertisements, which amounts to misleading advertisements under the Consumer Protection Act, 2019.

The authority has emphasised that all coaching institutes must strictly ensure truthful disclosure of information in their advertisements so that students can make fair and informed decisions regarding their academic choices.