Government Issues Advisory For Parents And Students On Rising Ed-tech Companies
NDTV
The parents and students are advised not to sign up for any loans and to avoid credit/debit cards registration on apps for subscriptions
The government has issued advisories for parents, students on ed-tech companies which have started offering courses, tutorials, coaching for competitive exams, etc. in an online mode given the pervasive impact of technology in education. The parents and students are advised to be careful while deciding on opting for online content and coaching being offered by a host of Ed-tech companies. "It has come to the notice of the Department of School Education and Literacy 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 advisory mentioned.
The government advisory has advised to avoid automatic debit option for payment of subscription fee as the Ed-tech companies may offer free premium business model which seem to be free at first, but for continuous learning access, students have to opt for a paid subscription. "Activation of auto-debit may result in a child accessing the paid features without realising that he/she is no longer accessing the free services offered by the ed-tech company," read the advisory. Also, the parents should aware a child about the features in the apps which used to encourage more spending.
The parents and students are advised not to sign up for any loans and to avoid credit/debit cards registration on apps for subscriptions. "Do not share your bank account details and OTP number with any marketing personnel," it mentioned.
Also, the Ed-tech platforms are instructed to be careful about the claims made regarding the services offered. As Ed-tech companies have seen rapid growth, so the companies which may be considered e-commerce entities have to comply with the Rules to prevent any untoward liability in the future and need to establish a dedicated mechanism in place to check for compliance with the law.
