The first-of-its-kind action has been initiated against IAS coaching centres and will also be extended to coaching classes for candidates aspiring to take entrance exams for the Indian Institutes of Technology, medical, chartered accountant, law and management courses, among others. While these centres showcase celebrity teachers in advertisements to lure aspirants, the so-called tutors never or rarely take classes.

The apex government institution for safeguarding consumer rights has issued notices to coaching institutes indulging in such unethical practices to make them refund the fees to aspirants who were taken for a ride by falsely promising classes by celebrity tutors.

Rising complaints and student rights

The National Consumer Helpline (NCH) has received numerous complaints about unethical trade practices by coaching centres to mislead aspirants.

“A common issue raised by students involves the absence of the so-called ‘celebrated’ guides or faculty members who were advertised as part of the coaching programme,” the first person quoted earlier said.

“However, when students realize this and seek a refund, their claims are often denied, with the institutes citing a policy that refunds can only be availed within 15 days of admission,” the person said. “This practice has left many aspirants feeling cheated and without recourse.”

The Department of Consumer Affairs (DoCA) has directed IAS coaching centres to adopt a more student-centric approach and discontinue the malpractice of rejecting or declining refund claims.

In FY24, 16,276 students from various coaching classes, including civil services, IIT, medical, CA, and others, approached the helpline after their requests were either declined, rejected, or not adequately addressed by the coaching centres, according to the consumer affairs ministry data.

The data also shows a rising trend in the number of dissatisfied students filing complaints with NCH. In FY22, 4,815 grievances were registered, followed by 5,351 in FY23, and 16,276 in FY24.

In 2024 (January-September), 6,980 students have approached NCH for quick resolution of their issues at the pre-litigation stage. 

Neither of the people quoted earlier provided the number of complaints related to promised celebrity teachers failing to conduct classes nor on teaching a few classes throughout the year.

“If there is a breach of trust by the coaching institutes, students are entitled to refunds. The coaching centres cannot deny refunds and should not force students to remain enrolled. They may charge a certain amount for the period a student availed themselves of the services and refund the remaining amount,” this person said.

“The ministry also encourages students to register their grievances through NCH,” this person said.

Penalties imposed on coaching institutes

Mint reported on 19 August that CCPA has served notices on 45 coaching institutes for allegedly violating consumer rights with misleading advertisements and unethical tactics. Of these, 15 have been penalized, with total fines amounting to ₹38.60 lakh.

The coaching institutes that have been penalised include Rau’s IAS Study Circle, IQRA IAS, Chahal Academy, Analog IAS, APTI PLUS Academy, and Unacademy, each with a penalty of ₹1 lakh; Maluka IAS, EduTap Learning Solutions, Yojana and Plutus IAS, and Sriram’s IAS, each with ₹3 lakh; KSG-Khan Study Group IAS and Shankar IAS Academy with ₹5 lakh; and BYJU’s IAS with ₹10 lakh. Seekers Education was fined ₹50,000, and Skyway Career Hub ₹10,000.

Queries emailed to the IAS coaching centres and the ministry of consumer affairs remained unanswered till press time.

“Business enterprises need to make their processes more transparent and move away from unethical trade practices,” said Ashim Sanyal, chief executive officer of Consumer Voice. “Aspirants are often attracted to certain coaching institutes based on the reputation of specific teachers, and when they do not receive this service, they should have the right to a refund of their fees.”

NEW DELHI: Central Consumer Protection Authority (CCPA) has directed ride-hailing platform Ola to offer a choice to customers to either opt for a refund directly in their bank accounts or a coupon that can be redeemed against booking another ride. It observed that only giving a coupon is “unfair trade practice“.
The authority also instructed the company to provide customers with a bill, receipt or invoice for all auto rides booked through its platform for greater transparency and accountability.
The CCPA, led by chief commissioner and consumer affairs secretary Nidhi Khare, observed that whenever a customer raised a grievance on the Ola app, the company, as part of its no-question-asked refund policy, only provided a coupon code, which could be used for the next ride, without giving the customer a clear choice between a bank account refund and a coupon.
“This violates consumer rights, and the no-question-asked refund policy cannot mean that the company incentivizes people to simply use this facility for taking another ride,” CCPA said.
The consumer rights protection watchdog also observed that if a customer attempted to access an invoice for auto rides booked on Ola, the app showed the message “Customer invoice for auto rides will not be provided due to changes in Ola’s auto service T&Cs”. The CCPA said this was also an “unfair trade practice” under the Consumer Protection Act.
CCPA said 2,061 complaints against Ola were lodged with the National Consumer Helpline and the main complaints were higher fare charged from a consumer than what was shown at the time of booking, non-refund of amount to consumer, driver asking for extra cash, and driver either not reaching the correct location or not dropping at correct location.
Following CCPA’s intervention, Ola has implemented several changes, including displaying contact details of grievance and nodal officers on its website, clearly mentioning cancellation policies and fees at the time of booking, adding more options for ride cancellation reasons, and publicising fare component breakdowns.
The other changes implemented were displaying the pickup and drop location addresses to drivers, and revised payment cycles for drivers for swift payment.