If self-regulation fails, stringent guidelines will be formulated: Centre to Edu-tech firms

Representational image (Source: Johnny McClung via Unsplash)

The Central government on July 1 warned Edu-tech companies against unfair trade practices, with the Consumer Affairs Secretary threatening them with stringent guidelines if self-regulation fails to put things back in order.

Rohit Kumar Singh, Secretary, Department of Consumer Affairs, said in a meeting held with the India Edtech Consortium (IEC) – a self-regulating body that runs under the aegis of the Internet and Mobile Association of India (IAMAI): “If self-regulation does not curb the unfair trade practices, then stringent guidelines would require to be formulated for ensuring transparency.”

Singh further said: “It has been reported that certain advertisements and practices do not seem to conform to prevalent guidelines and existing regulations. Therefore, it is imperative to work together to maintain robust checkpoints that align with the consumers’ interests. The problem of increasing fake reviews was also a major point of concern which needed to be contained.”

A recent report by ASCI revealed that the education category is the largest violator of advertising code in 2021-22, Singh added.

The Consumer Affairs Secretary then went on to advise the IEC to continue with their positive efforts to serve the ecosystem and form a joint working group with relevant stakeholders to create the SOPs in this regard.

Notably, the IEC comprises Indian start-ups and represents 95 percent of the Indian learner community.

The meeting which was attended by representatives of IAMAI, along with IEC member companies including upGrad, BYJU’S, Unacademy, Vedantu, Great Learning, WhiteHat Jr, and Sunstone, focused on issues pertaining to unfair trade practices and misleading advertisement for the Indian Edtech Sector figured prominently.

At the meet, Singh also discussed ways to better manage consumer interests across India’s Edtech ecosystem, while the members of the IEC discussed the need to “further enhance the Indian EdTech ecosystem to better safeguard consumer interests, through seamless, transparent, and feasible offerings for consumers”.

The industry members briefed the Secretary about the progress of the IEC and the direction of ongoing efforts to improve awareness and welfare of learners.