Byju’s to stop selling tuition to low-income families, will launch ‘affordability test’: Report

Education technology giant Bjyu’s has said it will stop selling tuition to poor families, who may struggle to afford it, according to India’s child rights body. Reference investigation.

in two part answer Reference Byju’s work culture and treatment of customers exposed by National Commission for Protection of Child Rights (NCPCR) summons issued– saying that the company had “engaged in malpractice to entice parents”.

On Friday, Praveen Prakash, one of the founding partners of Byju’s, appeared in a closed-door hearing on behalf of CEO Byju Raveendran. This is believed to be the first such notice issued against an edtech company in India over its sales practices.

NCPCR chairperson Priyank Kanungo said Mr Prakash said the company would launch an “affordability check” to ensure it did not sell its courses or offer loans to families earning less than Rs 25,000. Reference,

According to Mr. Kanungo, Byju’s also presented a revised refund policy during the hearing. Reference had interviewed several customers who said they had been exploited or defrauded into purchasing courses, and were ultimately unable to obtain a refund.

“We cannot regulate the workings of a tech company but the effects of their exploitative tactics were certainly within our purview,” Mr. Kanungo said in a phone interview.

“Today, the children have found some respite from the mental trauma that was being inflicted on the children and their families due to the company’s aggressive policies,” he said.

Byju’s has not publicly confirmed or denied the NCPCR’s version of events.

In a statement in response to NCPCR’s notice, the company highlighted its “robust sales audit process, high student satisfaction rates and large non-profit initiatives”.

Byju’s said it does not “mis-sell” products, or encourage its employees to “pursue customers who are unwilling or unable to pay for its products”.

The company statement also said that it does not offer loans directly, but connects parents of students who need financial aid to third-party banks or financial institutions.

After the hearing, Byju’s spokesperson told Reference The firm presented its “robust policies”, said “every issue was taken on board”, and that “improvements were being made”.

Mr Kanungo said the NCPCR had also asked Byju’s to provide a verified list of all its employees – including teachers and mentors – who come in contact with the students it enrolls.

In addition, Byju’s has been requested to prominently display details of the place to lodge complaints on its website, and ensure that parents’ concerns are addressed immediately, Mr. Kanungo said.

“Soon there will be a positive change,” said Mr. Kanungo.

Bengaluru-based Byju’s, which was founded in 2011 and launched its learning app in 2015, saw a boom in business during the COVID-19 pandemic when schools closed and students turned to online learning. But demand began to wane as children went back to their classrooms and the global economic outlook worsened.

The company faced thousands of complaints on social media and consumer websites this year alone from people who said they were profiled, pressured into signing up, and had their savings and future put at risk.

many parents told Reference that Byju’s employees exploited their children’s desire to provide the best education possible, and invaded their privacy by stalking them in public, harassing them at home, or surreptitiously collecting their data.

in response to ReferenceIn the investigation – published last week – Byju’s denied any wrongdoing, saying its operations were “centred around customer respect and satisfaction”.