Some ed-tech companies offering online coaching, study material, certificate courses and mock tests are trying to dupe parents through free services, the government has cautioned while issuing dos and don’ts for prospective customers of such services that have thrived with the pandemic affecting conventional modes of education.
“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,” says an advisory for citizens issued by the Press Information Bureau, the government’s publicity arm.
The online learning space is crowded with scores of ed-tech companies offering various services and assistance. These companies have mushroomed at a time the Covid-19 pandemic has caused prolonged closure of educational institutions.
According to the advisory, parents and students should avoid the automatic debit option for payment of subscription fees, a mode in which a customer provides his or her debit or credit card details to the service provider and money is transferred without the need for authorisation.
“Some ed-tech companies may offer the Free-Premium business model where a lot of their services might seem to be free at first glance but to gain 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,” the advisory says.
“Do read the terms and conditions before acknowledging the acceptance of learning software/device as your IP address and/ or personal data may be tracked,” it adds.
The advisory said the users must ask for a tax invoice statement for the purchase of educational devices loaded with contents, such as apps or pen drives.
“Do not trust the ‘Success stories’ shared by the ed-tech companies without proper check as they might be a trap to gather more audience,” the advisory warns.
E-commerce regulations put in place by the ministry of consumer affairs apply to the ed-tech firms as well, the advisory said. As per the regulations, every ed-tech firm needs to have a grievance officer who is supposed to address complaints within a month.
Prof. Sunil Sarangi, former director of the National Institute of Technology (NIT), Rourkela, welcomed the advisory but reflected on the larger issue of quality education not being available at most higher educational institutions, which forces parents and students to seek coaching to ensure admission to the limited number of excellent institutions.
“In India, the gap between those employed in the formal sector and those who are not is huge in terms of remuneration and respect. Parents want their children to get a respectable job. Education in certain types of institutions helps students to achieve their career objectives. But the completion is tough for admission into these institutions. So they take coaching and tutorials, online and offline,” Sarangi said.
N. Sai Balaji, a PhD student at Jawaharlal Nehru University, doubted the ability of parents to exercise caution while using the services of ed-tech companies.
“The advisory proves that the government has found out about the fraudulent practices of ed-tech companies. Have they investigated and taken action? Why is no investigation happening?” Balaji asked.
He alleged that the government had allowed these companies to operate and thus had a bigger responsibility to control their fraudulent activities than passing the buck onto parents who may not have the wherewithal to follow due diligence.
Balaji suggested that the companies operating in the education space, which is a not-for-profit sector, should become not-for-profit firms.
