consumer affairs – TheNewsHub

Consumer affairs ministry cancels e-gaming study planned for framing new rules

Aseem — Fri, 18 Oct 2024 00:00:06 +0000

New Delhi: The department of consumer affairs (DoCA) has decided to withdraw from framing guidelines for e-gaming and cancelled a planned study for protecting the growing number of online gamers, two people aware of the developmen said, after draft rules were issued by the ministry of electronics and information technology (MeitY).

Bengaluru’s National Institute of Mental Health and Neurosciences (Nimhans) was to conduct the study on “disruptive impulse control behavioural patterns of online gaming that may cause vulnerabilities,” with the plan to notify new rules after the completion of the detailed pan-India study.

The study, which was planned during the tenure of former consumer affairs secretary Rohit Kumar Singh, was set to cost the department ₹20 crore, with funds to be allocated to Nimhans.

Also read | ‘Move to recognize esports will give global exposure’

This comes in the backdrop of MeitY issuing draft rules for e-gaming, with the Centre of the view that sufficient reference studies on the impact of online gaming are available from other countries.

“There are enough studies and research papers available that can be utilized for preparing the guidelines. MeitY is working on it in a very positive manner, and there should not be any duplicity of work,” one of the two persons mentioned above said.

As per the plan, the findings of the research were to be used to frame guidelines for protecting consumers in online gaming. The report was also supposed to assist the industry in ensuring the optimal use of technology to minimize risks.

“Recent studies highlight e-gaming addiction, the nature of which is distinct in the case of skill-based esports and real money gaming (RMG). This requires separate policies and more insight into the matter,” said Ashish Shrivastava, co-founder and chief operating officer of Glazer Games, an esports company.

Justifying the cancellation of the study, the second person said, “It’s a well-known fact that e-gaming creates addiction, and research on youth and children has also established this fact. References can be taken from studies conducted by reputable institutions around the world, as human behaviour in relation to games in India is quite similar to that in other countries.”

Also read | ‘Ketchup sachets have a quality check, but not India’s gaming sector’

Spending ₹20 crore on such a study was not worthwhile, especially when another line ministry is already in the process of finalizing the norms, this person said.

“Gaming has today rapidly evolved and grown both in opportunities and challenges. However, concerns about gaming addiction are important but cannot rely solely on merely existing studies,” said Chandrahas Panigrahi, co-founder and chief executive officer of Lets Game Now, an esports portal.

“The e-gaming dynamics are changing, and continuous research is needed in order to be fully aware of the different age groups and gaming formats that may be affected,” Panigrahi said.

As per a report by Grant Thornton Bharat and the E-Gaming Federation (EGF), India is the second-largest gaming market in the world, following China, with 442 million gamers.

Read more | Game, set, match: Free pass likely for foreign investors in online gaming

Over the past five years, the Indian gaming sector has raised a total of $2.8 billion from both domestic and global investors, with the RMG segment being identified as one of the primary revenue drivers.

However, a recent study by Mordor Intelligence stated that India’s gaming market size is estimated at $3.49 billion in 2024, and is expected to reach $7.24 billion by 2029, growing at a compounded annual growth rate of 15.68% during the forecast period (2024-2029).

IAS coaching institutes under CCPA scanner for fleecing aspirants with false celebrity teacher ads

Aseem — Tue, 15 Oct 2024 00:00:16 +0000

The first-of-its-kind action has been initiated against IAS coaching centres and will also be extended to coaching classes for candidates aspiring to take entrance exams for the Indian Institutes of Technology, medical, chartered accountant, law and management courses, among others. While these centres showcase celebrity teachers in advertisements to lure aspirants, the so-called tutors never or rarely take classes.

The apex government institution for safeguarding consumer rights has issued notices to coaching institutes indulging in such unethical practices to make them refund the fees to aspirants who were taken for a ride by falsely promising classes by celebrity tutors.

Rising complaints and student rights

The National Consumer Helpline (NCH) has received numerous complaints about unethical trade practices by coaching centres to mislead aspirants.

“A common issue raised by students involves the absence of the so-called ‘celebrated’ guides or faculty members who were advertised as part of the coaching programme,” the first person quoted earlier said.

“However, when students realize this and seek a refund, their claims are often denied, with the institutes citing a policy that refunds can only be availed within 15 days of admission,” the person said. “This practice has left many aspirants feeling cheated and without recourse.”

The Department of Consumer Affairs (DoCA) has directed IAS coaching centres to adopt a more student-centric approach and discontinue the malpractice of rejecting or declining refund claims.

In FY24, 16,276 students from various coaching classes, including civil services, IIT, medical, CA, and others, approached the helpline after their requests were either declined, rejected, or not adequately addressed by the coaching centres, according to the consumer affairs ministry data.

The data also shows a rising trend in the number of dissatisfied students filing complaints with NCH. In FY22, 4,815 grievances were registered, followed by 5,351 in FY23, and 16,276 in FY24.

In 2024 (January-September), 6,980 students have approached NCH for quick resolution of their issues at the pre-litigation stage.

Neither of the people quoted earlier provided the number of complaints related to promised celebrity teachers failing to conduct classes nor on teaching a few classes throughout the year.

“If there is a breach of trust by the coaching institutes, students are entitled to refunds. The coaching centres cannot deny refunds and should not force students to remain enrolled. They may charge a certain amount for the period a student availed themselves of the services and refund the remaining amount,” this person said.

“The ministry also encourages students to register their grievances through NCH,” this person said.

Penalties imposed on coaching institutes

Mint reported on 19 August that CCPA has served notices on 45 coaching institutes for allegedly violating consumer rights with misleading advertisements and unethical tactics. Of these, 15 have been penalized, with total fines amounting to ₹38.60 lakh.

The coaching institutes that have been penalised include Rau’s IAS Study Circle, IQRA IAS, Chahal Academy, Analog IAS, APTI PLUS Academy, and Unacademy, each with a penalty of ₹1 lakh; Maluka IAS, EduTap Learning Solutions, Yojana and Plutus IAS, and Sriram’s IAS, each with ₹3 lakh; KSG-Khan Study Group IAS and Shankar IAS Academy with ₹5 lakh; and BYJU’s IAS with ₹10 lakh. Seekers Education was fined ₹50,000, and Skyway Career Hub ₹10,000.

Queries emailed to the IAS coaching centres and the ministry of consumer affairs remained unanswered till press time.

“Business enterprises need to make their processes more transparent and move away from unethical trade practices,” said Ashim Sanyal, chief executive officer of Consumer Voice. “Aspirants are often attracted to certain coaching institutes based on the reputation of specific teachers, and when they do not receive this service, they should have the right to a refund of their fees.”