FTC Warns of Student Privacy Risk in ConnectEDU Bankruptcy

May 27, 2014

The Federal Trade Commission is warning that personal information about high school and college students could be put at risk in the pending sale of property owned by ConnectEDU, which is going through a bankruptcy proceeding. ConnectEDU, which offered college and career planning services, filed for Chapter bankruptcy protection last month. In a letter to the bankruptcy judge Friday, the FTC said that ConnectEDU's potential sale of its assets through the bankruptcy proceeding is not giving its individual customers "reasonable notice and the opportunity to remove personally identifiable data from the service," as the company's privacy policy has said it would.

"We believe that any sale of the personal information of ConnectEDU’s customers would be inconsistent with ConnectEDU’s privacy policy, unless ConnectEDU provides those customers with notice and an opportunity to delete the information," Jessica Rich, director of the federal agency's Bureau of Consumer Protection, wrote in the letter. She urged the court to require the company either gave users that right or destroyed the information altogether.


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