The US Federal Trade Commission sent a letter to the court which oversees the bankruptcy proceedings of ConnectEDU, voicing concerns over the proposed sale of the company’s assets to North Atlantic Capital Corporation.
ConnectEDU, a college and career planning platform filed for Chapter 11 bankruptcy protection about a month ago after being unable to pay debt owed to over 200 creditors, estimating assets of $1 million to $10 million and liabilities between $10 million to $50 million.
According to the FTC, ConnectEDU promised consumers to notify them ahead of any sale of the company and to allow them to delete all personal data stored on the platform. This notice and choice apparently was not provided.
Earlier last week BostInno reported that two parts of ConnectEDU assets, namely CoursEvals and Academic Management Systems, have been acquired by the VC firm North Atlantic Capital Corp which held ConnectEDU in its portfolio. The court approval for the deal was set at a hearing on Friday, May 23rd.
Over the twelve years ConnectEDU offered its services it collected data like name, date of birth, address, e-mail address, telephone number, grade level, and additional information required to provide services to users. ConnectEDU registered more than 20 million students as well as 5,000 educational institutions and 130,000 employers in 40 countries, according to the company’s website.
Privacy concerns over student data have grown in the past couple of months, forcing the Gates Foundation backed inBloom to shut down and Google to stop scanning emails of students for advertising purposes.
- HEDLINE: ConnectEDU filed for Chapter 11 Bankruptcy | EDUKWEST
- ConnectEDU Assets Acquired by Portland VC Firm, Weeks After Filing for Bankruptcy Protection | BostInno
- FTC Seeks Protection for Students’ Personal Information in Education Technology Company ConnectEdu’s Bankruptcy Proceeding | FTC
- Re: ConnectEdu, Inc., No. 14-11238 (Bankr. S.D.N.Y.) | FTC
- Federal Regulators Seek to Stop Sale of Students’ Data | Bits