Govt warns edtech cos over unfair trade practices
New Delhi: Cracking a whip against errant edtech companies for indulging in unfair trade practices, including misleading advertisements, the Centre on Friday warned Edtech companies to comply with self regulatory frameworks else the government will be forced to bring stringent guidelines if they continue to indulge in unfair trade practices.
During a meeting over the pertinent issue that was chaired by Consumer Affairs Secretary Rohit Kumar Singh, the matters such as increase in fake review in the edtech space and ways to curb it were discussed. The meeting was held with self-regulatory body India Edtech Consortium (IEC) and other industry players.
IEC runs under the aegis of Internet and Mobile Association of India (IAMAI).
The meeting was attended by representatives of IAMAI, along with IEC member companies, including upGrad, BYJU'S, Unacademy, Vedantu, Great Learning, WhiteHat Jr. and Sunstone.
"If self-regulation does not curb the unfair trade practices, then stringent guidelines would be formulated for ensuring transparency," Singh said at the meeting.
Issues pertaining to unfair trade practices and misleading advertisements related to the Indian edtech sector figured prominently during the meeting, according to an official statement.
The secretary also discussed ways to better manage consumer interests across the edtech ecosystem. Singh pointed out that 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, he said.
A recent report by Advertising Standards Council of India (ASCI) has said that education category was the largest violator of advertising code in 2021-22.
Singh also advised IEC to continue with their positive efforts to serve the ecosystem and form a joint working group with relevant stakeholders to create Standard Operating Procedures (SOPs). IEC comprises Indian startups and represents 95 per cent of the Indian learner community.
