Reactions: Advisory to citizens regarding use of caution against Ed-tech Companies

The Union Ministry of Education has issued an `Advisory to citizens regarding use of caution against Ed-tech Companies’. It reads: Given the pervasive impact of technology in education, many ed-tech companies have started offering courses, tutorials, coaching for competitive exams, etc. in an online mode. In this background, the parents, students and all stakeholders in school education have to be careful while deciding on opting for online content and coaching being offered by a host of Ed-tech companies. The decision has to be well considered with several Do’s and Don’ts. Most importantly, the offer of free services that are promised by some companies has to be carefully evaluated. 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.” Here are some of the reactions on the same:

Divya Tej Pereira, Founder, Tutrrd

“With the growing number of ed-techs in the country offering a plethora of courses to students the ministry's new advisory has made the sector a more safe space so as to make sure students and parents are reaping the right benefits from the services provided by the ed-tech companies. With complete agreement with the advisory’s rules on avoidance of auto debit subscription we here at TUTRRD use a “pay as you go” model of remuneration so as to give students a decision making stance on their study choices. We believe in providing affordable solutions to students along with quality education giving students and parents the satisfaction of their decisions. Making the platform easily accessible will help students and parents  navigate through the platform with having to go through too many processes. I believe that the advisory will play an instrumental role in regulating all misleading practices and will lead to positive growth and healthier competition among the ed-tech companies.”

Anant Bengani, Co-founder, Zell Education 

"The EdTech industry has seen a massive rise since the pandemic hit in 2020 last year. With the new startup wave in this country, the EdTech space has currently become one of the fastest growing industries in India. Therefore, there was a need for a government regulation, which was filled in by the advisory published by the ‘Ministry of Education’ cautioning students and parents to ensure customer safety in the ever-competitive market.

The authenticated second factor of transaction (OTP), which was mandated by the RBI on 1st October, paved the way for more authentication on digital payments, introducing the new advisory for edtechs. This made it easier for students and parents to pick the right EdTech for themselves. Thus, companies who provide demo classes and free sessions have an advantage over the other market players. Many companies promise placements post course completion, but often these are marketing jargons to attract the desired audience. This raises questions for companies who are genuinely providing assistance and consultation for placements. At Zell, we train our students to be industry ready while assisting them with their queries and providing direction which can help them transform their careers.  To achieve this, we have adapted a transformative learning experience and learning management system in place.

The growth spurt in the education sector speaks volumes about the rise in valuation of the industry. Finally, there is focus on content has allowed students to thrive and focus on studies as well as think of ‘out of the box’ solutions. These solutions have allowed EdTech to penetrate the market deeper."

Parth Jain, Co-founder Studysid 

“We are delighted with this regulation as it will create a strong system which was the need of the hour in the Ed-Tech space. This will bring about a major positive shift as organizations will start adopting a standardized approach towards the market needs. This will eventually increase the trust of students and parents to transact online / search for their online educational needs. We understand that fear is a major driver used by many companies to increase their sales. However, with this advisory issued, parents will have the freedom to evaluate their child's performance on a monthly basis and strategically decide on what is the best for their child’s education. However, as an aggregator, this advisory makes it easier for us to help students and parents pick the right platform for them moving forward. There are many cases of companies making false claims / highlighting top brands as associations in order to lure students, along with terms like "100% placement assistance" which is a false guarantee.  We are positive that with this advisory, such false claims will be curbed and genuine providers will be benefitted from this going forward. Therefore, it seems like this will positively regulate the impact of the growth of the EdTech industry."