## Facts

- A Missouri corporation operated a nationwide high-school “post-secondary planning” survey program that collected extensive personal information from students, including contact details, academic and interest data, and sensitive demographic information.
- Surveys were distributed through schools, typically via teachers and guidance counselors, for students to complete in class.
- Program materials represented that the survey was a free, education-oriented service, funded by member colleges and universities, and that participating students would receive education-related admissions, scholarship, and planning information.
- The program’s privacy and use-of-data statements represented that student information would be used and shared only with colleges, universities, and other entities providing education-related services.
- The FTC alleged that, contrary to these representations, student information was also sold to direct marketers, list brokers, and other commercial companies, and that commercial entities helped fund the program.
- The FTC initiated an administrative enforcement action alleging deceptive acts or practices under § 5(a) of the FTC Act.
- The matter concluded through a Commission-issued consent Decision and Order rather than a litigated adjudication.

## Issues

1. Whether representing that student personal information would be used only for education-related purposes and that the survey was funded only by colleges and universities was deceptive under § 5(a) when the information was also sold for commercial marketing and commercial entities funded the program.

## Decision

- The Commission accepted a consent Decision and Order resolving the § 5(a) deception allegations.
- Respondents were barred from using previously collected student information for non-educational-related marketing purposes.
- For future collections, respondents were prohibited from using or selling student information for non-educational-related marketing purposes unless they clearly disclosed the actual uses and obtained appropriate consent.
- Respondents were prohibited from misrepresenting (a) the purposes for collecting and using student information, (b) the recipients or types of recipients of that information, and (c) material facts about funding sources for the survey or similar programs.
- The order imposed standard compliance obligations, including recordkeeping, reporting, and monitoring provisions for a long-term duration typical of FTC consumer-protection consent orders.

## Legal Principles

- Under § 5(a) of the FTC Act, a company commits deception when it makes material representations or omissions about privacy practices or data uses that are likely to mislead reasonable consumers (including intermediaries such as educators) in decisions to provide or facilitate collection of information.
- Privacy and data-use statements are enforceable representations; a mismatch between stated limits on use/sharing and actual commercialization can constitute deception.
- When surrounding messaging conveys restricted, education-related use, failing to disclose resale or use of student data for commercial marketing can be a material omission.
- FTC “fencing-in” relief may restrict both existing data uses and future practices, requiring clear, conspicuous disclosure and consent before expanding uses beyond what was represented.

## Conclusion

The FTC resolved the action by consent order, concluding that misleading statements and omissions about the funding and “education-only” use of high-school survey data violated § 5(a), and it imposed broad restrictions and disclosure-and-consent requirements to prevent student information from being used or sold for non-educational marketing inconsistent with prior representations.


In re Nat’l Research Ctr. for Coll. & Univ. Admissions, Inc., No. C-4071 (F.T.C. Jan. 28, 2003)