The Central Consumer Protection Authority (CCPA) has imposed a penalty of ₹8 lakh on Narayana Educational Institutions for allegedly publishing misleading advertisements regarding the performance of its students in the JEE Advanced 2024 examination.
The order, issued on June 11, was passed by a CCPA bench comprising Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra. The authority had initiated the matter on its own after examining advertisements released by the institute across multiple platforms, including its official website, social media channels and newspapers such as The Times of India.
The advertisements highlighted the achievements of students who secured top ranks in JEE Advanced 2024. However, the CCPA found that the promotional material failed to provide crucial details about the courses pursued by the students whose names, photographs and ranks were featured.
According to the authority, the advertisements gave the impression that all successful candidates were beneficiaries of the institute’s regular coaching programmes, without making clear whether they were enrolled in classroom courses, distance learning programmes or other academic offerings.
The CCPA stated that such disclosures are important because they allow students and parents to accurately evaluate the institute’s services before making decisions related to expensive competitive exam preparation programmes.
The authority also raised concerns over the use of the claim “AIR 1”, observing that the advertisement did not clearly explain whether the achievement referred to an overall rank or a category-specific ranking, which could potentially mislead readers.
Narayana Educational Institutions argued that mentioning complete course details was difficult due to limited space in advertisements. However, the CCPA rejected the explanation, stating that important consumer information cannot be ignored in favour of promotional claims.
The authority observed that the advertisements gave priority to highlighting student achievements while leaving out information that could influence consumer choices. It also pointed out that even digital advertisements, where space restrictions were not a concern, failed to prominently disclose the relevant details.
The CCPA further noted that certain disclosures, where present, were printed in very small fonts, making them difficult for ordinary consumers to notice.
Highlighting the influence such advertisements can have on students preparing for highly competitive examinations like IIT-JEE, the authority said misleading claims in the education sector can significantly impact consumer decisions.
The CCPA directed Narayana Educational Institutions to immediately stop using the advertisements that were found objectionable and submit a compliance report within 15 days.
It also instructed the institute to ensure that all future advertisements contain complete and accurate disclosures. Any disclaimers or qualifying information must be displayed clearly and in a font size and format equally visible as the names, ranks or achievements being promoted.
The directions were issued under the provisions of the Consumer Protection Act, 2019, along with the applicable rules and advertising guidelines.