What happened with BYJU’s?
BYJU’S CEO Byju Raveendran asked to appear in person on December 23rd by Apex child rights body for indulging in malpractices of hard selling, mis-spelling, and student exploitation
Notice has been issued after cognizance of a media report – a two-part investigation cited by the child rights body illustrates the company’s exploitative work culture, and aggressive sales tactics to lure vulnerable and low-income parents. It claims accounts of parents exploited and deceived by gaslighting their desire to provide the best education.
This explains how this unscrupulous business model preys on vulnerable, financially illiterate, non-tech-savvy parents who are coerced into buying loan-based courses putting their savings and futures in jeopardy. Byju’s staff claimed in the report that the company’s success is built on an abusive and exploitative work environment and unscrupulous sales practices. Denying the allegations, Byjus responded claiming to uphold the “highest safe workplace standards” and operating on the “highest ethical standard”.
“The Commission is in observance that indulging into malpractices to lure the parents or children into entering loan-based agreements and then causing exploitation is against the welfare of children and in pursuance of the functions and powers under Section 13 and 14 of CPCR Act, 2005,” NCPCR said.
In light of the accusation and complaints made in social media and consumer forums, the Commission observes BYJU’S aggressive sales practices and blindsiding parents into entering loan-based agreements as a violation of the set norms and regulations.
The Commission has asked BYJU’S CEO to appear in person in front of the body. It has sought details of courses with structure, fees, refund policy, no of students enrolled, and the legal documents recognizing Byju’s as a valid ed Tech Company.
Also, all relevant documents are required to explain the discrepancy regarding the claims made in the media report. Failing to comply with the order, Raveendran will be subjected to the consequences of non-attendance under the Code of civil procedure.
The Edtech Industry has grown tremendously in the last 5 years.BYJUS is the market leader in this industry valued at around 15 billion. Greater scrutiny, government intervention, and framing of legislation are demanded by lawmakers, and activists. The absence of a Specific Edtech policy around labor rights, and data privacy has led to exploitation and unfair trade practices.
