On May 23, 2014, the Federal Trade Commission announced that the FTC’s Bureau of Consumer Protection sent a letter to the court overseeing the bankruptcy proceedings for ConnectEDU Inc. (“ConnectEDU”), an education technology company, warning that the proposed sale of the company’s assets raises privacy concerns. ConnectEDU’s assets include personal information collected from students, high schools and community colleges in connection with the company’s website and affiliated services.
The letter states that these privacy concerns “would be greatly diminished” if ConnectEDU gives users “notice of the sale of their personal information and opportunity for its removal” or destroys the personal information. The court also could appoint a “privacy ombudsman to ensure that the privacy interests of ConnectEDU’s customers are protected.”
The FTC voted to approve the issuance of the letter 5-0.
Read the related post on the FTC’s Business Center Blog.