The Competition and Consumer Affairs Authority recommends that the government introduce standard Terms and Conditions for all private educational institutions. This is to safeguard consumer rights, especially families of students enrolled in private educational institutions. According to the authority, there is a prevalence of inconsistent and vague terms and conditions surrounding refund practices, cancellation policies, and the lack of adequate provisions to safeguard consumer rights in private educational institutions.
The Competition and Consumer Affairs Authority, CCAA selected 10 out of 62 private educational institutes in Thimphu for the evaluation.
The report titled “Evaluating the Consumer-Friendliness of Terms and Conditions of Private Educational Institutes: Identifying Interventions for Enhancing Consumer Protection,” highlighted that while 70 per cent of private educational institutions has clear refund policies, withdrawal conditions, and payment schedules, the remaining institutions did not have clear details.
Additionally, only 60 per cent fully disclose tuition fees, with 40 per cent failing to include information about additional costs such as uniforms, textbooks, and extracurricular activities leaving families to shoulder unexpected financial burdens.
The study also found that payment flexibility varies. While some institutions offer installment options, others demand full upfront payment and enforce strict late penalties, which in some cases increase progressively, placing added financial pressure on students.
Only 30 per cent of the institutions allowed students to withdraw within a reasonable timeframe without excessive penalties, while 80 per cent denied this right or imposed harsh withdrawal conditions.
It was also found that the majority do not notify students and parents in advance about changes to terms. The study found only 40 per cent were providing such notifications. Registration fees also varied significantly, with some institutions charging non-refundable amounts as high as Nu 10,000, while others kept to a decent Nu 2,000.
Additionally, none of the institutions had student and parent data protection policies.
The authority stated that by addressing these gaps, private educational institutions can foster a more equitable, transparent, and accountable environment for learners.
Namgay Wangdi
Edited by Phub Gyem
