HIGHLIGHTS:
- The government has put pressure on edtech companies as they were enrolling children from low-income families in pricey lessons.
- EdTech refers to the combination of education and technology.9
- The consortium is being done to decrease government intrusion in the operational principles, rules, and regulations of the industry.
What is in the News?
The government has put pressure on edtech companies after accusations surfaced that they were enrolling children from low-income families in pricey lessons by duping their parents into consenting to onerous loan terms to pay for these classes.
India EdTech Consortium is a group of private firms in India that have teamed together. It was established with the help of the Internet Mobile Association of India. It was created when the Indian government indicated that it will create a strategy to control the edtech (education and technology) sector.
What is educational technology (Edtech)?
EdTech refers to the combination of education and technology. The education and technology sectors were performing regularly prior to COVID-19. They were steadily increasing in size. The COVID-induced lockdown resulted in the closure of schools and universities. Suddenly, modern options, i.e., distance learning, became the sole option. During this stage, four out of every six edtech startups have succeeded in their respective fields. And these startups are worth a billion dollars!
Who are the members of the Consortium?
It is primarily made up of enterprises with a market capitalization of $1 billion or more. Unacademy, BYJU’s, upGrad, Lead School, and Vedantu are all part of this. Unicorns are firms with a market capitalization of $1 billion or more. Unicorns are companies with yearly revenues of more than one billion dollars in the United States.
What are some of the edtech businesses’ complaints?
People are enrolling in courses without thoroughly researching them. The edtech companies aren’t giving out enough information about the courses. This comprises the subjects covered, the pricing structure, the certificate, and so on. Some people have even applied for loans. Parents are being forced to sign for the auto debit option by some edtech companies.
Need for the consortium
The consortium is essentially framing self-regulation. This is being done to decrease government intrusion in the operational principles, rules, and regulations of the industry. The Indian parliament recently debated the edtech industry’s malpractices. These techniques are carried out in order to gain customers. The Government of India published a does and don’ts advise to guardians and students who are enrolling in online courses offered by edtech companies in December 2021.
What is the consortium’s strategy?
A three-page code has been released by the consortium. It emphasizes transparency and cautions against misleading advertisements. Only with sufficient proof of achievement can educational institutions exploit their students’ success as a promotion strategy. The Advertising Standards Council of India’s guidelines should be mandatory for all industry participants. Loan-related FAQs should be explicitly stated.
