The educational defendent has interpreted COPPA as requiring arbitration rather than court action.
The Federal Trade Commission (FTC) filed an amicus brief supporting a group of parents who have filed suit against IXL Learning, Inc. The agency disagrees with the company’s interpretation of the Children’s Online Privacy Protection Act (COPPA) as requiring arbitration. The lawsuit alleges that IXL Learning unlawfully collected, used, and sold children’s data through its educational services. The company claimed that school districts—by agreeing to its terms of service—also bound parents to arbitration under COPPA, acting as their agents in this agreement.
The FTC explained, “The parents’ putative class action lawsuit alleges that the education company violated various laws, including the Federal Wiretap Act and multiple California statutes, as well as common law privacy torts.“
The FTC’s brief clarifies that neither COPPA nor the COPPA Rule mandates that parents and children be subject to all aspects of the service agreement between a company and a school district, including arbitration clauses. The case is currently being reviewed in the Northern California U.S. District Court.
As the Lord Leads, Pray with Us…
- For Chair Khan and members of the FTC as they support the parents’ action against the educational business.
- For U.S. officials to be discerning as they seek to protect children’s data and privacy.
Sources: Federal Trade Commission
