In an April blog entry on its site, education technology company ConnectEDU defended the use of data "to progress students toward true success in their education and careers." Now the company, which filed for chapter 11 bankruptcy protection at the end of April, faces the wrath of the Federal Trade Commission, which has publicly expressed concern about how ConnectEDU will handle the student data it has compiled over its last 12 years of operation, The Journal reported yesterday. ConnectEDU provides interactive online tools to help students and their families and school advisors with career-planning activities. The company claims to have information about 20 million registered learners, 5,000 educational institutions and 130,000 employers across 40 countries. ConnectEDU has also collected personal information in the form of student records made available in its contracts with high schools and community colleges. The company is hoping to sell or transfer its assets through its bankruptcy proceeding. In a letter sent to the judge handling the case in the U.S. Bankruptcy Court for the Southern District of New York, FTC Director of the Bureau of Consumer Protection Jessica Rich warned against allowing the company to sell its data assets. The company states, however, that in the event of a sale, it "will give users reasonable notice and an opportunity to remove personally identifiable data from the service."
