Specifically, ConnectEdu, an education technology company that provided interactive tools to assist students, parents and school counselors in career planning sought to sell substantially all of its assets in a Chapter 11 bankruptcy proceeding in the Bankruptcy Court for the Southern District of New York. (In Re ConnectEdu, Inc., et al., Case No. 14-11238 United States Bankruptcy Court for the Southern District of New York.) According to the FTC, ConnectEdu collected a substantial amount of personal information from high school and college student customers including names, dates of birth, addresses, email addresses, telephone numbers and additional information.
In the event of sale or intended sale of the Company, ConnectEdu will give users reasonable notice and an opportunity to remove personally identifiable data from the service.
These cases and the recent activity in California highlight the need for all companies to review their website privacy policies generally, and specifically as they relate to how personal information collected on the sites may be used and disclosed, including in connection with the potential sale of the business. Absent such review, uses and disclosures that may be considered usual and customary, and otherwise permissible, could subject a company to significant legal liability and monetary exposure stemming from the terms of the company’s own website policy.