Ed-tech sector set to bring out self-regulation code; government issues advisory against misselling
Summary
The government has taken note of rising complaints against some ed-tech companies for misleading consumers.
The ed-tech industry, which is under fire, with the government issuing an advisory to warn customers against misselling and other practices by some ed-tech platters, is working to bring out a self-regulation code, sources told CNBC TV 18.
Industry body Internet and Mobile Association of India (IAMAI) has been working with members, which include the leading ed-tech players, to bring out some form of self-regulation that will protect the interests of the customer.
The government has taken note of rising complaints against some ed-tech companies of misleading consumers and put out a stern advisory on December 23, in which it has warned citizens to “carefully evaluate” offer of free services promised by ed-tech companies and also alerted that “some ed-tech companies are luring parents in the garb of offering free services and getting the Electronic Fund Transfer (EFT) mandate signed or activating the Auto-debit feature, especially targeting the vulnerable families.”
The education Ministry has put out a list of Dos and donts, which include warning customers to “avoid Automatic debit option for payment of subscription fee,” and “Avoid credit/debit cards registration on apps for subscriptions,” and to “not trust the “Success stories” shared by ed-tech companies without proper checks.”
The ministry has also asked ed-tech companies to comply with the Consumer Protection (E-Commerce) Rules, 2020 and the Advertising Standards Council of India’s Code for Self-Regulation and to ensure transparency in advertisements.
There have been multiple Social media posts and reports about ed-tech company Byju’s that cite instances of misleading and misselling, which has led to a concern with the ed-tech sector.
Byju’s did not respond to CNBCTV18’s queries on the advisory and customer complaints.
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