Child Rights Panel Summons BYJU’s CEO For Alleged Malpractices

The National Commission for Protection of Child Rights (NCPCR) has summoned edtech decacorn BYJU’S’ chief executive officer (CEO) Byju Raveendran for allegedly luring parents and children into buying the company’s courses. 

“The commission has come across a news article wherein it has been pointed out that the sales team of BYJU’S is indulging in malpractices to lure parents to buy their courses for their children,” NCPCR was quoted by news portal Livemint. 

Raveendran has been asked to appear before the panel on December 23 to explain his stance on the matter.

Quoting news reports, the child rights body stated that many users were allegedly exploited and deceived after availing BYJU’S courses .

The commission also observed that luring parents or children into entering loan-based agreements was in contravention of set norms and regulations.

In pursuance of powers under the provisions of the Commissions for Protection of Child Rights Act, 2005, the commission has sought details of all courses run by BYJU’S, along with their fee structure. 

The NCPCR has also sought information about the number of students currently enrolled in each course and the platform’s refund policy.

The company has been in the line of fire owing to a range of reasons, including mounting losses, high cash burn and a funding crunch. BYJU’S losses stood at INR 4,588 Cr in the financial year 2020-21 (FY21). On a yearly basis, its total income declined 3.3% to INR 2,428.3 Cr during the period under review. 

Making matters worse have been inflationary pressures and other macroeconomic factors. The startup has also been in the limelight for mass layoffs.

The action from NCPCR has come a year after the Ministry of Education issued an advisory, urging parents to be vigilant before availing edtech services.

In a report, the Advertising Standards Council of India found the education sector to be the biggest violator of advertising code. The edtech sector accounted for 5% of the total number of complaints that were registered between April 2022 and September 2022. 

Earlier this year, the Centre formulated a panel to probe exorbitant claims made by edtech platforms. Meanwhile, the University Grants Commission (UGC) directed higher educational institutions to withdraw any degree or diploma programmes offered in partnership with edtech companies.

Even though the regulator scanner has intensified, BYJU’S remains the biggest player in the edtech space and commands a considerable share in the sector that is projected to reach a market size of $10.4 Bn by 2025.