diff --git a/src/bin/postinstall.js b/src/bin/postinstall.js
index 65154ab4..daf52818 100644
--- a/src/bin/postinstall.js
+++ b/src/bin/postinstall.js
@@ -3,12 +3,15 @@ const fs = require('fs');
 const crypto = require('crypto');
 const path = require('path');
 const { v4: uuidv4 } = require('uuid');
-const {PYTHAGORA_METADATA_DIR, CONFIG_FILENAME, PYTHAGORA_API_SERVER} = require("@pythagora.io/js-code-processing").common;
+const { PYTHAGORA_METADATA_DIR, CONFIG_FILENAME, PYTHAGORA_API_SERVER } = require("@pythagora.io/js-code-processing").common;
 const packageJson = require('../../package.json');
 
 const pythagoraVersion = packageJson.version;
 const configPath = path.join(process.cwd(), '../..', PYTHAGORA_METADATA_DIR, CONFIG_FILENAME);
 
+// Check if telemetry is enabled using an environment variable
+const telemetryEnabled = process.env.PYTHAGORA_TELEMETRY_ENABLED == 'true';
+
 // Calculate the SHA-256 hash of the installation directory
 const installationDirectory = path.join(process.cwd(), '../..');
 const hash = crypto.createHash('sha256');
@@ -19,11 +22,11 @@ let config;
 try {
     config = JSON.parse(fs.readFileSync(configPath));
 } catch (err) {
-    // Config file doesn't exist or is not valid JSON
+    console.error('Config file does not exist or is not valid JSON. Creating a new one.');
+    // logging the error message
+    console.log(err);
 }
 
-if (!config) config = {};
-
 // If there's no userId, generate one and save it to the config file
 if (!config.userId) {
     config.userId = uuidv4();
@@ -34,18 +37,22 @@ if (!config.userId) {
     fs.writeFileSync(configPath, JSON.stringify(config, null, 2));
 }
 
-// Send the request to the telemetry endpoint
-const telemetryData = {
-    userId: config.userId,
-    pathId,
-    event: 'install',
-    pythagoraVersion
-};
+// Send telemetry data only if telemetry is enabled
+if (telemetryEnabled) {
+    const telemetryData = {
+        userId: config.userId,
+        pathId,
+        event: 'install',
+        pythagoraVersion
+    };
 
-axios.post(`${PYTHAGORA_API_SERVER}/telemetry`, telemetryData)
-    .then((res) => {
-        console.log('Telemetry data sent successfully');
-    })
-    .catch((err) => {
-        console.error(`Failed to send telemetry data: ${err.message}`);
-    });
+    axios.post(`${PYTHAGORA_API_SERVER}/telemetry`, telemetryData)
+        .then((res) => {
+            console.log('Telemetry data sent successfully');
+        })
+        .catch((err) => {
+            console.error(`Failed to send telemetry data: ${err.message}`);
+        });
+} else {
+    console.log('Telemetry is disabled. Data will not be sent.');
+}
diff --git a/src/templates/jest-config.js b/src/templates/jest-config.js
index d20156c5..301ae1d4 100644
--- a/src/templates/jest-config.js
+++ b/src/templates/jest-config.js
@@ -1,7 +1,7 @@
 module.exports = {
     testEnvironment: "node",
-    globalSetup: './pythagora_tests/exported_tests/global-setup.js',
+    globalSetup: './src/templates/jest-global-setup.js',
     roots: [
-        "<rootDir>/pythagora_tests/exported_tests"
+        "<rootDir>/pythagora_tests/unit/src"
     ],
 };
diff --git a/src/templates/jest-global-setup.js b/src/templates/jest-global-setup.js
index b69a1984..1d6c5b13 100644
--- a/src/templates/jest-global-setup.js
+++ b/src/templates/jest-global-setup.js
@@ -1,11 +1,5 @@
 module.exports = async () => {
-
-    // function that sets up Mongo to be used in tests
-    // global.setUpDb = () => {};
-
-    // function that cleans up the database after tests are done
-    // global.cleanUpDb = () => {};
-
-    // function that returns a Mongo collection so that tests can query the database
-    // global.getMongoCollection = (collection) => {};
+    // Check if the developer has opted out of telemetry and set the environment variable accordingly
+    const optOutTelemetry = process.env.PYTHAGORA_TELEMETRY_ENABLED === 'false';
+    console.log(`Telemetry is ${optOutTelemetry ? 'disabled' : 'enabled'}`);
 };