If Edtech companies continue unfair trade practices, strict guidelines will be formulated: Govt
The Central government has warned the ed-tech companies against unfair trade practices and said that if required stringent guidelines would be formulated.
Consumer Affairs Secretary Rohit Kumar Singh held a meeting with the self-regulatory body, India Edtech Consortium (IEC), which runs under the aegis of the Internet and Mobile Association of India (IAMAI), in New Delhi and warned the ed-tech companies against unfair trade practices and said that if self-regulation does not curb the unfair trade practices, then stringent guidelines would require to be formulated for ensuring transparency.
“Singh said that if self-regulation does not curb the unfair trade practices, then stringent guidelines would require to be formulated for ensuring transparency," the consumer affairs ministry said in a statement, as reported by News 18.
The meeting was attended by representatives of IAMAI, along with IEC member companies including upGrad, BYJU’S, Great Learning, WhiteHat Jr. and Sunstone.
Fake reviews - one of the major concern
As per reports, one of the major concerns is fake reviews. ASCI report suggested that the education category is the largest violator of the advertising code in 2021-22 and provides fake reviews. The Secretary has advised creating SOPs (Standard operating procedures) in this regard.
“The problem of increasing fake reviews was also a major point of concern which needed to be contained. Notably, a recent report by ASCI revealed that the education category is the largest violator of the advertising code in 2021-22. The Secretary also advised IEC to continue with their positive efforts to serve the ecosystem and form a joint working group with relevant stakeholders to create the SOPs (standard operating procedures) in this regard," the statement added.
In June this year, the government has come up with new guidelines to prevent misleading advertisements, including those targeting children and making free claims to woo consumers. The guidelines also specify due diligence to be carried out while endorsing advertisements.
Announcing the guidelines, Consumer Affairs secretary Rohit Kumar Singh said: “Advertisements have great interest for consumers. Under the CCPA Act, there are provisions to handle misleading advertisements affecting consumers rights."
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