The Central Consumer Protection Authority (CCPA) has fined edtech platform Byju’s Rs 10 lakh for disseminating purportedly inaccurate and deceptive advertisements related to its online coaching services for the Indian Administrative Service (IAS), as per a report by the Mint.
In 2022, the government body took suo moto cognizance of the matter and sent a show-cause notice to Byju’s on August 24th that year.
The directive issued on November 23 states that Think & Learn Pvt. Ltd., operating IAS preparation courses under Byju’s brand, was unable to provide substantiating proof for its assertions of a gradual rise in the number of candidates selected in UPSC civil services examinations. According to the order, the company claimed an increase from 62 selections in 2013 to 295 in 2020.
The CCPA, in its order, has instructed the company to pay a penalty of Rs 10 lakh and furnish a compliance report within 15 days from the date of the order. The edtech firm has been mandated to cease its advertisements.
However, Byju's disagreed with the CCPA order, plans to appeal, and asserts that its advertisements are not misleading.
According to the order, the CCPA claimed that Byju's IAS breached Section 2 (28) of the Consumer Protection Act, 2019 by intentionally withholding crucial information about the courses attended by successful candidates. This act was deemed as an attempt to deceive and mislead consumers for commercial gains.
The order highlighted that Section 2(28) of the Act specifies the criteria for a misleading advertisement concerning any product or service.
