Consumer Protection
The student counsellor needs to be aware of consumer protection requirements in destination countries which have an effect on contractual obligations.
Advertising and Promotion
In most cases, both consumer protection laws and registration conditions constrain education institutions’ advertising and promotion. As with marketing regulations, the fundamental requirement is for the accuracy and integrity of the information supplied to students.
Consumer protection requirements can relate to:
- Truth in advertising
- Advertising and promotion strategies
- Forms of advertising and promotion.
Marketing information is discussed in A4.2 Agent Contracts and Accountability/Information Handling and Recruitment.
Contracts
Consumer protection laws usually stress that contracts and agreements must be fair and reasonable, and that parties must not be deceived, intimidated, or unduly pressured into signing them.
Prospective students should not be rushed or coerced into any form of contract with the education agent and must be supplied with complete and relevant information to make an informed decision. Similarly, the student counsellor must make sure that students are fully informed before applying for enrolment and visas.
Protection of Money
Both domestic consumer laws and registration conditions usually hold education institutions strictly accountable for the handling of student money. Institutions, in turn, make agents contractually responsible for the treatment of student funds. This includes money paid by students for:
- Deposits
- Tuition fees and related charges
- Management fees
- Visa fees, etc.
It may also include money handled on behalf of students for other purposes, e.g., travel, accommodation, health care, etc. In addition, there are usually conditions concerning the processing and payment of agent commissions.
Education institutions generally have clear agreements with agents about the way in which student money is processed. This may include the use of trust funds and special accounts and specific time frames and mechanisms for money transfers. In all cases, the security of student funds is paramount.
Money handling is discussed in A4.2 Agent Contracts and Accountability.
Delivery Guarantees
Consumer protection laws usually specify that goods and services must be fit for their purpose and of a standard commensurate with the price paid by the consumer. This applies to both the quality and delivery of education products and services
Education institutions must ensure that:
- Their courses are delivered and assessed appropriately
- Their courses lead to the promoted outcomes
- Students receive the tuition and support services for which they have paid.
Consumer laws and registration conditions may mandate that education institutions make provision for non-delivery of courses. This is to ensure that students are not disadvantaged in the event of a course or college closure. Education institutions may be required to:
- Withdraw student fees from holding accounts only when each portion of the tuition is delivered. The remaining money is then available to pay for the remaining tuition at another institution if necessary.
- Take out insurance to cover the cost of students completing their courses at another institution.
- Have reciprocal agreements with other institutions to take over the enrolments of affected students. Such agreements may be organised by relevant industry associations.
The student counsellor should be aware of the delivery guarantees of education institutions, and be able to let prospective students know that their enrolment is secure. This knowledge may be influential in students’ choice of study destination.
Education delivery is discussed in A4.1 Legal Requirements of Education Providers/Education Provision.
Complaints
Education institutions are usually obliged to have effective complaint handling and resolution procedures and appeal processes. These must be accessible by students and fair to all parties.
In most cases, complaints are initially processed internally by educational institutions. If the complaint is not resolved by internal processes, it may be referred to an independent external arbiter. In the event the dispute is still not settled, students may take legal action under the terms of consumer protection regulations, torts law, or other civil legislation.
Complaints about assessment outcomes may be handled by internal remarking or re-assessing, or by external re-assessment by an independent examiner. Appeals about assessment outcomes must only be upheld if the students meet the appropriate assessment criteria.
Extension Questions: For each relevant destination country:
- What consumer protection is there for international students?
- How is consumer protection implemented and monitored?
- How does it affect students?
- How does it affect the student counsellor?