Govt working on policy to regulate ed-tech firms: Dharmendra Pradhan

Pradhan stressed that the government was not going to impose any restriction on the companies but will not tolerate any form of exploitation. “We have received some reports in the recent past that some ed-tech companies are exploiting students in remote areas. Those who enroll themselves by making payments are free to do so but no one should be lured by keeping them in the dark,” he said.

“I have directed school, higher education and skill ministries to issue advisories. We are also in touch with the Ministry of Electronics and Information Technology and Law Department to explore as to how to frame a common policy on this (ed-tech sector),” Pradhan said.

Underlining that “data is the new oil”, the minister said companies working in related sectors should be more innovative rather than exploitative. He also appealed to the ed-tech companies to work responsibly, saying the government wants these companies to flourish.

On December 23, the Education Ministry had issued an advisory on the need to be cautious while dealing with ed-tech companies and specifically their apparently free services.

“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,” said the advisory.

Pointing out that the ed-tech companies have registered a rapid growth in enrollment of students and teachers in the recent past, the government, through the advisory, also directed the companies to be careful about claims made regarding services offered by them.

“It is very much evident that the Ed-tech companies which may be considered e-commerce entities have to comply with the Rules to prevent any untoward liability in the future and need to establish a dedicated mechanism in place to check for compliance with the law,” it had said.

The advisory came days after Congress MP Karti Chidambaram raised the issue of these companies allegedly indulging in “predatory marketing practices” during the Winter Session of Parliament. He had also flagged the matter in a letter to Pradhan on December 14.