Survey company settles out of court
January 31, 2005
A Missouri-based research company was forced to pay out a $300,000 settlement to 42 states and change its policies after it sold information about high school students to commercial companies.
The students affected, however, won’t see any of the money because it would be too difficult to track them down.
The National Research Center for College and University Admissions Inc. collected students’ names; addresses; gender; grade point average; date of birth; academic, occupational, athletic and extracurricular interests; racial or ethnic background; and religious affiliation.
The nonprofit corporation told students the personal information they provided would be used primarily for college admissions purposes, said Bill Brauch, director of the consumer protection division at the Iowa Attorney General’s Office. More than 5 million high school students fill out the survey annually.
“It is very likely that most ISU students completed the survey,” Brauch said. “Half of all Iowa high school students fill out the survey every year, and college-bound students have a higher percentage of doing so.”
Students believed the personal information they disclosed to the research company would be shared exclusively with colleges and other education-related services. The organization had a legal responsibility to inform students their information was to be sold to commercial entities, Brauch said.
“This agreement is all about requiring a company to respect the privacy interests of students and parents,” said Iowa Attorney General Tom Miller, who led the group of states in the lawsuit.
The admissions company, however, sold students’ information to various for-profit organizations that used the information to solicit students for the sale of commercial products, said Bob Brammer, spokesman for the Iowa Attorney General’s office.
“Selling information for commercial purposes is not illegal … but violating people’s privacy is, and we think it’s a big deal,” Brauch said.
According to the company’s former privacy policy, “This data is used by colleges, universities and other organizations, to assist students and their families by providing them with valuable information.”
The company changed its collection practices and policy statement around Feb. 1, 2002 to restrict sharing of student information only with educational or employment-related organizations, according to court documents.
The assurance of voluntary compliance, filed Jan. 14, states the company collected personal information from high school students since at least 1988, with the organization’s “Post Secondary Planning Survey.”
Students were also able to access this survey on the organization’s Web site: http://www.nrccua.org.
In the court-mandated agreement between the company and the Iowa Attorney General — which states the organization “has engaged in conduct in violation of their respective consumer protection laws” — the company admits no violation.
According to the mandate released Jan. 13, the company must pay a total sum of $300,000 to the Iowa Attorney General’s Office. The money will then be divided up among the 41 other states.
The attorney’s office said money will be used at the discretion of each states’ attorney general according to its state laws.
Because a large number of students completed the surveys, Brauch said, it would be impossible to track or award any money to students. The company declined to comment.