The Ed-tech companies were warned by the government on Friday against indulging in any kind of unfair trade practices, which could include misleading advertisements. It has been notified that it if there is no self-regulation by the industry practicing such players then they will be forced to bring stringent guidelines.

HIGHLIGHTS
Government warned Ed-tech companies against unfair trade practices.
Government can impose stringent guidelines for ensuring transparency in functioning.
According to ASCI education was the largest violater of advertising code in 2021-22.

During a meeting by Consumer Affairs Secretary Rohit Kumar Singh with self-regulatory body India Ed-tech Consortium (IEC) which runs under the aegis of Internet and Mobile Association of India (IAMAI). The meeting had included other industry players in the national capital, there is an increase in fake review within the Ed-tech space and the ways to curb it were discussed in the meeting

The meeting was attended by representatives of IAMAI, along with IEC member companies, along with upGrad, BYJU'S, Unacademy, Vedantu, Great Learning, WhiteHat Jr. and Sunstone. 'If self-regulation do not curb the unfair trade practices, then stringent guidelines would be required to get formulated for ensuring transparency while functioning,' Singh has mentioned in the meeting.

According to an official statement, the issues those were applicable to unfair trade practices and misleading advertisements would relate to the Indian Ed-tech sector figured prominently during the meeting. The ways to manage consumer interests across the Ed-tech ecosystem in a better manner got discussed by the Secretary. Singh has pointed out that certain advertisements and practice does not seem to conform to the prevalent guidelines and existing regulations were reported earlier. Therefore, it is imperative to work together in order to maintain robust checkpoints that would align with the consumers' interests, he added in his statement.

A recent report by Advertising Standards Council of India (ASCI) stated that the largest violater of advertising code in 2021-22 was the education. Singh has even advised IEC to continue with their positive efforts to serve the ecosystem and later, form a joint working group with the most relevant stakeholders so that it could create Standard Operating Procedures (SOPs). IEC represents 95 per cent of the Indian learner community and therefore, comprises of great Indian startups.

The members of the industry have discussed the urgent need to further enhance the Indian Ed-tech ecosystem to safeguard consumer interests through seamless, transparent, and feasible offerings for consumers. All these that were discussed were the part of the agenda. The secretary was briefed by the members of industry about the progress of the IEC along with the direction of ongoing efforts to improve awareness and welfare of learners. In the recent months, the cab aggregators, restaurant owners and food delivery platforms are getting cracked for unfair business practices by the government.

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