The move by the consortium of 15 firms, wchich have set up an autonomous body called the ‘India EdTech Consortium‘ under the aegis of the Internet and Mobile Association of India (IAMAI), comes at a time when the threat of regulatory oversight looms large over the fast-growing sector.
Last week, Union Education Minister Dharmendra Pradhan said that his office is in talks with the Ministry of Law as well as the Ministry of Electronics and Information Technology to work out a regulatory policy for the edtech sector. In its missive to the government, the industry grouping said it would also establish “a two-tier grievance redressal mechanism to ensure that business is conducted with high transparency and with customer interest in mind”.ET has reviewed a copy of the letter.
Other edtech firms that have joined the India Edtech Consortium include Careers 360, Harappa Education, Times EdTech & Events Ltd., Simplilearn, Doubtnut, Classplus and Toppr, with more companies expected to “come on board”, sources told ET adding that the managing committee for the grouping will be finalised this week. The move, a first by Indian edtech companies, comes amid a growing chorus for regulation of the sector, which has gained from a major tailwind since the onset of Covid-19 in India with students signing up for online courses in huge numbers.
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“We are not against their business growth. But there cannot be a monopoly and students can’t be exploited,” minister Pradhan said last week.
Industry executives in the know told ET that the edtech firms are primarily focusing on addressing two core areas—no misleading advertisements and avoiding misleading payment structures—as they seek to assuage government ire. The code is also aimed at ensuring appropriate and ethical sales practices, marketing communication, fair practices on financing, loans and refunds.
