China penalises online educational platforms for misleading consumers

Zuoyebang, sponsored by the largest marketplace Alibaba, has been caught using false advertising. Courses offered by EdTech technology company Yuanfudao, sponsored by investment holding company Tencent, were sold for prices inconsistent with their quality. As it turned out, both companies posted false information about the teaching staff, course content and posted fake favourable reviews.

Both platforms have not challenged the allegations and said they would immediately adjust their policies and the information placed. Yuanfudao revealed that it had already re-evaluated its products and altered any false information that could mislead users.

In April, the Beijing authorities fined four educational platforms $77,00 each. Among those penalised were GSX and Koolearn. In the wake of these incidents, Chinese regulators have tightened their grip on the online education industry and said they intend to continue to tackle false pricing and misleading advertising in the market.