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Contracts between colleges and publishers allowing students to be automatically billed for course materials as part of their college fees have come under fire in a new report.
U.S. PIRG Education Fund, a student advocacy group, reviewed 52 contracts at 31 colleges. In a report published yesterday, the group said it had identified several “major issues” with automatic billing.
Automatic billing contracts, also known as inclusive access deals, have been criticized by student advocacy groups and independent college bookstores for limiting students’ ability to shop around for textbooks, particularly in the used textbook market. Publishers say inclusive access deals offer great value for students and ensure they all have the right materials to succeed on the first day of class.
Department of Education regulations allow institutions to automatically bill students for course materials only if the materials are discounted and students are given the option to opt out.
The U.S. PIRG report found that nearly 50 percent of the contracts it reviewed did not clearly disclose their discount structure, making it difficult for students to tell how good a deal they are getting. A third of the contracts had the potential for annual uncapped price increases, and 68 percent of contracts included clauses where the discount would be eliminated if not enough students enroll in the program.
One-fifth of the contracts limited the number of students who could purchase print versions of their materials. Publishers could also veto campus marketing materials at 42 percent of institutions, the report said.
