States Settle With Student Data Collection Company

Attorney General Spitzer today announced that 42 states including New York have entered into a settlement with a company that was deceiving students into providing personal information through high school student surveys.

The states alleged that National Research Center for College and University Admissions (NRCCUA) falsely represented or implied that the information it collected from high school students was shared only with colleges, universities and other entities providing education-related services. In fact, NRCCUA shared the information with commercial entities that used the information to solicit the students for the sale of educational and non-educational commercial products or services.

NRCCUA's representations also implied that its survey was funded solely by educational institutions, when, in fact, the survey was also funded by two commercial entities, American Student List (www.studentlist.com) and Educational Communications, Inc. (www.honoring.com) which used the survey data for educational and non-educational purposes.

"The surreptitious collection of personal data about our children for marketing purposes will not be tolerated," Spitzer said. "Protecting our children's privacy must be paramount to any commercial endeavors that involves collection of their personal identification information."

It is estimated that millions of students have completed NRCCUA's surveys over the past years.

The Missouri-based company provides surveys to U.S. high school teachers and guidance counselors and requests that they be given to students to complete. Students also may complete the survey on-line via the Internet. The NRCCUA surveys ask students for personal information, such as their name, address, gender, grade point average, date of birth, academic and occupational interests, racial or ethnic background, and, in the event the student is interested in attending a college with a religious affiliation, the denomination of their choice.

The settlement requires NRCCUA to:

• Not misrepresent how personally-identifiable information will be collected, used or disclosed, or how the collection of the information is funded;



• Disclose clearly and conspicuously why it collects personal information of students and the types of entities to which it is disclosed;



• Make such disclosures in all of its privacy statements and in all questionnaires, survey instruments, and other documents;



• Cease all future use of survey data collected from a student if a parent (in the case of a minor) or an adult high school student requests that the student be excused from completing the survey; and



• Supply schools with a notice form to be given to parents notifying them about the survey and explaining how their child may opt-out of completing the survey, if NRCCUA intends to use the survey data for non-educational marketing purposes.

Spitzer said that parents of high school and junior high school students should be aware that their children may be asked to complete surveys like those of NRCCUA and others and that federal law allows parents to tell schools not to give certain surveys to their children.

As part of the settlement, NRCCUA will make a payment of $300,000 to the states to be used for attorneys' fees and investigative costs, consumer education, litigation, or for public protection or local consumer aid funds.

In 2002, Spitzer's office filed a lawsuit to stop a similar scam being perpetrated by Long Island-based Student Marketing Group, Inc. As a result of his office's efforts, this company has been barred from disclosing for non-educational marketing purposes any personal information it gathers from students in New York State unless it provides a clear notice to parents, students and educators prior to distributing the surveys.

The 42 states joining the AVC are: AK, AL, AZ, CA, CO, CT, DE, FL, HI, ID, IL, IA, KY, LA, MD, ME, MI, MN, MO, MS, MT, NJ, NY, NV, NC, ND, NM, OH, OK, OR, PA, RI, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY.

For New York State, the case was handled by Special Assistant Attorney General Stephen Mindell and Assistant Attorney General Herbert Israel of the Consumer Frauds and Protection Bureau.