BUSINESS

Rau’s IAS Study Circle Faces Penalties From CCPA, Seeking Education For False Ads

According to a statement released by the consumer protection agency CCPA on Monday, Rau’s IAS Study Circle and Seekers Education have been fined for publishing deceptive marketing.

The Central Consumer Protection Authority (CCPA) authority also reported that after taking action against three travel portals, Yatra, HappyEasyGo, and Easymytrip, the number of cancelled reservations and awaiting refund amounts because of the Covid-19 epidemic decreased.


According to the announcement, Tekshiv Systems has been ordered by the CCPA to stop selling pressure cookers under the Quba brand on e-commerce platforms without the quality mark. The firm has also been told to pay a fine of Rs 1,000,000 for providing customers with subpar goods.

According to the Authority, Rau’s IAS Study Circle has been ordered to pay a fine of Rs. 1,000,000 for printing false advertising. According to the announcement, Seekers Education has been ordered to pay a fine of Rs 50,000 for running a deceptive advertising, according to the CCPA.

According to the announcement, the CCPA has taken legal action against Yatra, HappyEasyGo, and Easymytrip for failing to reimburse customers for reservations that were cancelled owing to the Covid-19 epidemic.

According to the CCPA’s initiative, the number of reservations that were cancelled and required a refund as a result of the COVID-19 epidemic has drastically decreased from 22,974 to 10,705 on Yatra.

“The amount pending for refund has decreased to Rs 7.46 crore from Rs 14.69 crore as of August 13, 2012,” the Central Consumer Protection Authority, led by Chief Commissioner Nidhi Khare, said.

In relation to the reimbursement of outstanding reservations, the CCPA has also taken action against HappyEasyGo and Easymytrip.

HappyEasyGo has 3,722 reservations that are waiting for refunds as of July 2021. According to the 5 August 2022 Order, the firm was required to provide accurate information about bookings impacted by lockdown, including how many have been reimbursed and how many are still pending, as well as the reasons for any delays, the CCPA stated.

Despite many warnings, the corporation did not react, and on March 23, the District Collector of Gurugram was tasked with conducting the proper inquiry.

Additionally, action has been taken against Easymytrip. As of May 30, 2023, there were 39 pending reservations as opposed to 379 on July 1, 2022, the CCPA said.

In addition to travel portals, the CCPA has issued rulings against other businesses engaging in consumer rights violations, false advertising, and unfair business practises.

The CCPA said that in the instance of Rau’s IAS Study Circle, the business had been ordered to pay a fine of Rs. 1,000,000 for running deceptive marketing.

Upon investigation, it was discovered that 111 of the 143 applicants were a part of the Interview Guidance Programme (IGP). The IGP Course is not a full-time course, unlike to other courses, as noted by CCPA. Only after passing both the UPSC-CSE Preliminary and Main Exams may an applicant enrol in the IGP Course.

According to the CCPA, making the claim that an aspirant is a “successful student” of RAU’s IAS Study Circle without making the appropriate information about the course the aspirant chose, is deceptive marketing under the Act.

As a result, it said, the statement “Hundreds of Rau’s IAS Study Circle students aced the UPSC exam this year as well” may unquestionably deceive consumers about the real contribution performed by the opposing party in an aspirant’s successful completion of the exam.

According to the CCPA, the Seekers Education “misleads consumers in general and the targeted section, i.e., aspirants preparing for such exams in particular” by claiming a success percentage of 99.99% in the absence of any evidence.

A Rs. 50,000 fine has been imposed on the corporation for running a deceptive advertising.

The Authority issued a reprimand to “Seekers Education” for running an advertising in the Trichy edition of the Dinamalar newspaper on May 9, 2021, with the claims that “Be it online or offline, We are the best” and “99.99% in JEE 2021.”

It also issued a ruling against Tekshiv Systems Pvt Ltd for selling subpar household pressure cookers on online shopping sites under the “Quba” name. The Domestic Pressure Cooker (Quality Control) Order, 2020, according to the CCPA, set obligatory norms that were broken.

The business has been ordered to recall the 101 pressure cooker units it sold, pay the buyers’ purchase costs for the returned pressure cookers, and submit a compliance report in 45 days.

According to the CCPA, the firm was also ordered to pay a Rs. 1,000,000 fine for supplying household pressure cookers to customers in violation of the requirements set out in the Quality Control Order (QCO).

A residential pressure cooker with a 5-litre capacity that was “without standard mark” was discovered during the inspection. Along with the invoice and challan, two components of the pressure cooker were also bought as tangible proof.

The pressure cooker’s production date, which was revealed to be 01.10.2021, was plainly earlier than the QCO’s effective date of 01.02.2021. To reach the total of 101 units, the firm sold 19 units on Amazon, 67 units on Flipkart, 8 units on Shopclues, and 7 units on Paytm Mall.

The Authority said, “The company has admittedly given its consent to online platforms to recall the domestic pressure cookers,” and noted that the disregard for the requirements set out by the QCOs not only puts the general public in risk but also exposes customers to serious injury and even death.

It was emphasised that this is a serious reason for worry, particularly with regard to residential pressure cookers, which are common household items found in most houses close to family members.

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