The Vajirao and Reddy Institute has been penalised ₹15 lakh by the Central Consumer Protection Authority (CCPA) for issuing misleading advertisements related to the Union Public Service Commission (UPSC) Civil Services Examination (CSE), 2023.
The Authority observed that Vajirao and Reddy Institute deliberately concealed material information in its promotional claims, particularly regarding the specific course(s) opted for by successful candidates.
The final order stated that Vajirao and Reddy Institute published multiple claims on its official website following the declaration of the UPSC CSE 2023 results on April 16, 2024.
The advertisements prominently featured names and photographs of successful candidates and included the following assertions:
- “Over 645 Selections Out of 1016 Vacancies in UPSC CSE 2023 From Vajirao & Reddy Institute”
- “6 in Top 10 AIR”
- “35 in Top 50 AIR”
- “64 in Top 100 AIR”
At the same time, Vajirao and Reddy Institute advertised various courses offered by it, including GS/Complete Course/Foundation Course, Pre-Foundation Course, Weekend Course, Optional Subject Course, and GS Pre-cum-Mains Course.
According to the CCPA, these representations created a misleading impression among consumers that all successful candidates had enrolled in these regular courses offered by Vajirao and Reddy Institute.
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Concealment of Material Information Violates Consumer Rights
The CCPA observed that what constitutes “important information” in an advertisement must be assessed from the perspective of a consumer and varies on a case-to-case basis.
In the present matter, the Authority held that the specific course opted for by a successful candidate is material information for a UPSC aspirant.
The non-disclosure of this information created a misleading impression that the successful candidates were trained by Vajirao and Reddy Institute across all stages of the Civil Services Examination – Preliminary, Mains, and Interview – which may not be factually correct.
The Authority noted that such concealment directly impacts the ability of aspirants to make informed academic decisions regarding which course to enrol in and at what stage of their preparation.
It stated that true and honest disclosure of the specific course(s) undertaken by successful candidates would enable aspirants to evaluate the efficacy, scope, and quality of services offered.
The omission of such material information was held to be a violation of consumer rights under Section 2(9) of the Consumer Protection Act.
Discrepancies in Enrolment Records at Vajirao and Reddy Institute
During the proceedings, the CCPA examined enrolment forms of successful candidates submitted by Vajirao and Reddy Institute.
The Authority found that 431 enrolment forms did not specify or mention the course(s) for which students had enrolled. Additionally, these forms did not indicate the date on which they were filled.
The CCPA raised these discrepancies with Vajirao and Reddy Institute; however, no satisfactory explanation was provided. The Institute also failed to produce corroborative documentary evidence such as fee receipts or other relevant records to substantiate its claims.
The Authority observed that such lack of disclosure and absence of supporting documentation raised serious concerns regarding the genuineness and veracity of the claims made in the advertisements in comparison to the documents submitted before it.
For the remaining enrolment forms where course names were mentioned, the CCPA noted that many reflected only “Interview Guidance Programme” or “Mock Interview.”
As per the data submitted by Vajirao and Reddy Institute, these candidates had enrolled solely for the Interview Guidance Programme, which is conducted after the Preliminary and Mains stages of the UPSC Civil Services Examination.
This indicated that such candidates had already cleared the Preliminary and Mains stages independently and had approached Vajirao and Reddy Institute only for mock interviews or interview guidance at the final stage.
The Authority held that the advertisements therefore created a misleading impression regarding the extent of services actually provided.
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Repeat Contravention Attracts Higher Penalty
The CCPA further noted that Vajirao and Reddy Institute had earlier been proceeded against for publishing misleading advertisements in relation to UPSC CSE 2022 results. In that matter, a penalty of ₹7 lakh had been imposed.
Despite prior regulatory intervention and caution, Vajirao and Reddy Institute continued to publish similar claims in subsequent advertisements. In view of the recurring nature of the violation, the present case was treated as a subsequent contravention, warranting a higher penalty in the interest of consumer protection.
The Authority highlighted that approximately 11,00,000 candidates apply for the UPSC Civil Services Examination each year, making it a highly competitive examination with a vast target audience.
Consumers invest significant time, effort, and financial resources in preparation. The CCPA observed that deliberate concealment in advertisements can mislead students and parents by creating false expectations regarding outcomes and the effectiveness of coaching services.
So far, the Central Consumer Protection Authority has issued 57 notices to various coaching institutes for misleading advertisements and unfair trade practices. Penalties amounting to ₹1,24,60,000 have been imposed on 29 coaching institutes, along with directions to discontinue such misleading claims.
