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Imposes ₹8 Lakh Penalty on for Misleading Advertisements under
In a significant move to regulate the aggressive marketing practices of coaching institutes, the () has imposed an ₹8 lakh penalty on the . The order, delivered by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, targets the institute's JEE Advanced 2024 promotional campaigns, which the authority found to be inherently misleading and detrimental to the rights of students and parents.
A Pattern of Concealment The proceedings were initiated after the scrutinised advertisements published in The Times of India , on the institute's official website, and through its Facebook page. The investigation centered on the institute's failure to disclose essential information—specifically, the nature of the courses enrolled in by successful candidates.
The discovered that while the institute prominently featured successful rank holders, it masked the fact that many of these students were either part of Distance Learning Programs (DLP) or other non-classroom modules. The authority noted that this omission denied prospective students the ability to make informed choices, creating a false impression that every featured student had been a full-time, classroom participant.
Arguments and Rebuttals defended its actions by citing "space constraints" in advertisements and labeling the missing data as "inadvertent clerical errors." The institute further argued that its actions were protected under regarding .
The flatly rejected these justifications. In its assessment, the Authority remarked:
"The justification submitted by the Institute citing 'space constraints' is untenable and does not absolve it of its
. Such selective disclosure and inadequate presentation of
amounts to deliberate concealment of important information."
Furthermore, the Authority noted that the institute’s failure to provide accurate fee records or verify student consent for using their photographs on promotional materials constituted a violation of privacy and dignity.
Key Observations The 's order highlighted several critical lapses:
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Illegible Disclaimers:
"The OBC notation in the advertisement was printed in blue font on a blue background and was of a disproportionately small font size... such that it was not ordinarily legible to a consumer without deliberate magnification."
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The Material Importance of Disclosure:
"The specific course opted for by a successful candidate including whether it was a full-time classroom programme, a distance learning module, a crash course, or a free merit-based programme is therefore which goes to the heart of the consumer's decision-making process."
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Regulatory Responsibility:
"The statutory burden of complete and prominent disclosure rests upon the advertiser not upon the consumer."
The Road Ahead The ’s ruling serves as a stern warning to other coaching entities that resort to aggressive and deceptive marketing. The Authority has ordered Narayana to discontinue all current misleading advertisements and mandated that future campaigns must include clear, legible disclaimers regarding the nature of the enrolled courses.
This decision reinforces the (let the seller beware) doctrine, highlighting that in the competitive landscape of Indian coaching, truth and transparency are no longer optional. The institute has been given 15 days to submit a compliance report regarding the penalty payment and the modifications made to its advertising protocols.
