Digital Deception and Consumer Trust in India’s Coaching Industry Unveiling Fake Reviews, Psychological Biases, and Regulatory Gaps

Digital media has transformed consumer engagement in India’s coaching industry for exams like IIT-JEE, NEET, JAM, UPSC, and CAT. Online Reputation Management (ORM) tools are widely used to build digital trust and influence enrolment decisions. This study examines how coaching institutes exploit psychological biases bandwagon effect, halo effect, and fear of missing out (FOMO) to mislead consumers and exaggerate success claims. Consumers post positive, negative, and neutral reviews on various platforms, which we collected and used for our analysis. Through sentiment analysis, review of public data, and promotional content, we identify fraudulent practices such as fake advertisements, fabricated rankings, bot-generated reviews, and coerced testimonials that exploit consumer psychology and platform weaknesses. Our findings show a predominance of negative feedback concerning the services offered. The paper also discusses regulatory gaps under the Consumer Protection Act, IT Act, and IPC, highlighting the need for stronger governance. We propose a multi-pronged approach including AI-based fraud detection, ethical disclosure mandates, KYC-linked feedback, centralized audit systems, and awareness programs for parents and students. These measures aim to protect consumer trust, ensure fair competition, and support India’s emergence as a global education hub.