1. Compliances and registration for all NPs in the education service industry
A. Consumer Protection Act and the rules/ guidelines issued thereunder
1.1 Compliances of product service provider under the CPA
A product service provider shall comply with the obligations provided under Section 85 of the CPA.
1.2 Compliances under E-commerce Rules
(i) Please refer to Para 1.1 of Annexure E for compliances to be followed by all E-commerce entities.
(ii) Please refer to Para 1.2 of Annexure E for additional compliances to be followed by all marketplace E-commerce entities.
(iii) Please refer to Para 1.3 of Annexure E for additional compliances to be followed by all inventory E-commerce entities.
(iv) Please refer to Para 1.4 of Annexure E for additional compliances to be followed by all sellers on the marketplace E-commerce entity.
1.3 Guidelines on Misleading Advertisements
Please refer to Annexure F for the compliances to be followed under these guidelines by an entity advertising goods or services offered by it to consumers.
1.4 Guidelines on Dark Patterns
An entity advertising goods or services offered by it to consumers must comply with the Guidelines on Dark Patterns.
1.5 Greenwashing Guidelines
Please refer to Annexure G for the compliances to be followed under these guidelines by an entity advertising goods or services offered by it to consumers.
1.6 Coaching Sector Guidelines
A Coaching Centre providing coaching to the students must adhere to the compliances under the Coaching Sector Guidelines.
B. Data protection laws
The IT Act read with the SPDI Rules are the primary legislations in India governing data privacy and protection on a sector-neutral basis. To the extent the NPs will collect/handle personal data falling under the category of SPDI, it is required to be compliant with the obligations specified under the SPDI Rules. A summary of the key obligations under the SPDI Rules of an entity, inter alia, for collecting, processing and transferring of SPDI, has been set out in Annexure H.
Please note that once the DPDP Act is enforced, all entities collecting, handling, or processing personal data will be required to comply with the obligations prescribed under the DPDP Act.
C. Compliance with IT Rules
To the extent, the NP qualifies as an intermediary, it will be required to implement the due diligence obligations (depending on the category of intermediary) as has been set out in Annexure I, if it seeks to avail the exemption from liability in accordance with Section 79 of the IT Act.
D. Compliance under formal education framework
The provision of formal education, particularly courses that lead to the award of degrees or diplomas, is regulated under the University Grants Commission Act 1956 (“UGC Act”) and the All India Council for Technical Education Act 1987 (“AICTE Act”). In particular:
(i) UGC Act: Under Section 22(1), the right to confer degrees is reserved for universities established by law, deemed universities, or those institutions specifically empowered by Parliament. Section 22(2) of the UGC Act prohibits any other entity from conferring or granting degrees.
(ii) AICTE Act: Programs leading to degrees or diplomas in technical education (e.g., engineering, architecture, pharmacy, management, etc.) can only be offered by institutions registered with the AICTE. This is governed under the AICTE Act, AICTE Grant of Approval Regulations 2020, and related guidelines.
Skilling courses offered by ecosystem players on the ONEST platform would generally not fall within the formal education framework if the following conditions are adhered to:
(i) Nomenclature: The course names should not match AICTE or UGC-approved program names (e.g., “Post Graduate Diploma” or “Master's in Artificial Intelligence”).
(ii) Duration: The courses must be of a shorter duration, less than those required for formal degree or diploma courses under UGC / AICTE.
(iii) Curriculum: The curriculum should not align with any UGC or AICTE approved curriculum.
(iv) Award: Upon completion, the students should only receive a certificate of completion and not a degree or diploma.
E. Compliance under informal education framework
Informal education programs, such as certificate courses or executive programs, offered by private entities or education operators that are not recognized by AICTE or UGC, are not regulated under UGC or AICTE laws. However, some key compliance considerations remain:
(i) State-specific regulations: Certain states regulate coaching centres or tutorial institutions that prepare students for state or national exams. These institutions may need to be registered with the state government.
(ii) Sector-specific regulations: Some sectors, such as aviation, may require specific approvals for training organizations. For instance, the Directorate General of Civil Aviation mandates approvals for aviation training institutions under the Aircraft Act 1934 and Aircraft Rules 1937.
(iii) Coaching sector guidelines: As noted in the draft compliance handbook shared by you, entities providing coaching services must adhere to the Guidelines for Prevention of Misleading Advertisement in Coaching Sector 2024. Additionally, according to the Ministry of Education's Guidelines for Regulation of Coaching Centres, tuition and instruction provided to more than 50 students fall under the coaching centre definition. However, the guidelines do not explicitly address online centres. Nonetheless, ecosystem players operating in a hybrid mode are likely to be subject to regulation.