TAG: GS 2: POLITY
THE CONTEXT: The Central Consumer Protection Authority (CCPA) has introduced draft guidelines to regulate misleading advertisements by coaching centres, emphasizing the need to protect consumers from false claims and deceptive practices.
EXPLANATION:
- The guidelines aim to bring transparency, prevent misinformation, and ensure accountability within the coaching sector.
Context and Background:
- Government Initiative:
- The move comes in the wake of the government’s commitment to address issues related to coaching centres.
- Guidelines have been drafted prohibiting enrolment of students below 16 and restricting misleading promises.
- CCPA’s Call for Public Feedback:
- The CCPA has actively sought public feedback on the ‘Draft Guidelines for Prevention of Misleading Advertisement in Coaching Sector,’ demonstrating a commitment to inclusivity and a collaborative approach.
Scope and Definition:
- Definition of Coaching:
- The guidelines define ‘coaching’ broadly, encompassing tuition, academic support, learning programs, or guidance provided by any person.
- Conditions for Misleading Advertisements:
- The draft outlines specific conditions that classify an advertisement as misleading within the coaching sector, focusing on claims related to success rates, student selections, and rankings in competitive exams.
Prohibited Practices:
- Concealment of Information:
- Coaching centres are discouraged from concealing essential information related to course details and duration, influencing a consumer’s decision.
- False Claims:
- Prohibition of false claims regarding success rates and rankings without providing verifiable evidence.
- Acknowledgment of Individual Efforts:
- Mandate for coaching centres to acknowledge the individual efforts of students in their success and clearly state the extent of coaching involvement.
- Avoidance of Fear-Based Tactics:
- Prevention of creating a false sense of urgency or fear of missing out, aiming to protect students and parents from undue anxieties.
Applicability and Consumer Protection:
- Broad Applicability:
- The guidelines are designed to be applicable to every person engaged in coaching, reinforcing a comprehensive approach to curb misleading practices across the sector.
- Consumer Protection Framework:
- Aligning with the Consumer Protection Act, 2019, the proposed guidelines act as a regulatory framework to safeguard consumer interests.
Accessibility and Stakeholder Consultation:
- Website Placement:
- The draft guidelines are made accessible on the Department of Consumer Affairs website, facilitating public scrutiny and feedback.
- Stakeholder Consultation:
- Prior to drafting, a stakeholder consultation on misleading advertisements in the coaching sector was conducted, garnering input from key entities like the Ministry of Education, FIITJEE, and National Law University Delhi.
Consumer Protection Act, 2019:
- The Consumer Protection Act, 2019 (Act No. 35 of 2019) was enacted in India to safeguard the interests of consumers and establish mechanisms for timely and effective resolution of consumer disputes. Here are some key provisions of the act:
- Three-Tier Quasi-Judicial Mechanism:
- The act establishes a three-tier quasi-judicial mechanism for redressal of consumer disputes:
- District Consumer Disputes Redressal Commission: At the district level.
- State Consumer Disputes Redressal Commission: At the state level.
- National Consumer Disputes Redressal Commission: At the national level.
- Pecuniary Jurisdiction:
- The act specifies the pecuniary jurisdiction of each tier of the consumer commission, ensuring that disputes are handled appropriately based on their financial value.
- Improved Protection for Consumers:
- The Consumer Protection Act, 2019 replaces the Consumer Protection Act, 1986.
- It aims to strengthen consumer protection, especially in the context of globalization, online platforms, and e-commerce markets.
- The act provides improved protection for consumers involved in online transactions.
- Establishment of Authorities:
- Central Consumer Protection Authority (CCPA):
- CCPA is a statutory body constituted under Section 10 of the Consumer Protection Act, 2019.
- Responsible for administration and settlement of consumer disputes at the central level.
- Empowered to recall goods, issue penalties against false/misleading advertisements, and more.
- District Consumer Disputes Redressal Commission, State Consumer Disputes Redressal Commission, and National Consumer Disputes Redressal Commission:
- Each tier handles consumer complaints and disputes within its jurisdiction.
- Provides a structured process for resolution, including mediation, hearings, and appeals.
- Central Consumer Protection Authority (CCPA):
- The act establishes a three-tier quasi-judicial mechanism for redressal of consumer disputes:
Conclusion:
- The draft guidelines represent a proactive step by the government to address challenges in the coaching sector.
- By involving stakeholders and seeking public feedback, the authorities aim to create a robust framework that not only regulates misleading advertisements but also ensures transparency, accountability, and protection of consumers’ interests.
- The guidelines, once finalized, are poised to shape a more ethical and consumer-friendly environment within the coaching industry.
