Shadow Costs of EdTech: A Surrogate Indicator Approach to Ethical Concerns in Byju's Subscription Model across Tamil Nadu and Kerala

AbstractIndia’s edtech sector, led by companies like Byju’s, has witnessed rapid growth, offering expanded access to digital learning. However, concerns about coercive sales practices, data privacy violations, and misleading advertising have raised ethical red flags. This article investigates the ethical dimensions of Byju’s operations through a regional lens, comparing Tamil Nadu and Kerala. Using surrogate indicators—digital literacy, consumer grievance patterns, income disparities, and EMI-linked financing—we estimate the scope of ethically questionable practices. Findings highlight a higher prevalence of risk in economically vulnerable regions like rural Tamil Nadu, whereas Kerala’s strong digital literacy and consumer protections serve as mitigating factors. The study also examines Byju’s leadership framing of recent controversies and the broader startup ethos of “forgiveness, not permission,” drawing connections between business culture and ethical accountability. Policy recommendations are proposed for regulatory audits, transparency mandates, and ethical sales frameworks in India’s edtech ecosystem. Keywords:edtech ethics, coercive sales, surrogate indicators, Byju’s, digital literacy, Tamil Nadu, Kerala