Byju's, other edtech startups pulled up for 'misleading' advertisements

The Centre took serious note of allegations against startups that surfaced during a recent meeting with edtech companies

Customers of education-tech companies in India including Byju's — one of India's most valuable startups — have accused the companies of "aggressive mis-selling" and of making tall claims in their advertisements. The consumer affairs department has received 147 consumer complaints against edtech startups, sources told The Economic Times.

The Centre took serious note of allegations against startups during a meeting with edtech companies and India Edtech Consortium (IEC) on June 24, 2022. The concerns against Byju’s and other prominent edtech companies were highlighted during this discussion.

Also Read | Centre warns edtech companies against unfair trade practices

“Aggressive mis-selling to parents is something that was discussed, among other issues, along with certain claims being made in advertisements. Byju’s was advised to work closely with the Advertising Standards Council of India (ASCI),” one of the officials told ET.

Senior departmental officials relayed their concerns in a follow-up call to executives at Byju’s. IEC has received at least two complaints against Byju’s and its coding unit WhiteHat Jr, sources added.

Industry self-regulatory body ASCI informed that out of 5,532 advertisements that it processed in the previous fiscal year, 33 per cent of the complaints were from the education sector, including complaints against edtech companies.