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FTC Brief: COPPA Doesn't Bind Parents to IXL Learning's Arbitration

IXL Learning, Inc.August 19, 2024Federal Trade Commission

Summary

The Federal Trade Commission filed an amicus brief in a lawsuit where parents sued IXL Learning for allegedly collecting and selling children's data without proper consent. The FTC argued that under COPPA, school district agreements to arbitration do not bind parents. The brief opposes IXL Learning's attempt to compel arbitration.

Contract Impact

In-house legal teams should review all vendor agreements with educational institutions (e.g., school districts) and any direct customer agreements involving minors. Focus on clauses governing consent mechanisms (especially verifiable parental consent under COPPA), data collection and sharing (including the sale of children's data), arbitration provisions, and any language defining the school's role as an agent for parents. Changes may be needed to ensure parental consent is obtained separately and explicitly from school agreements, to remove or limit arbitration clauses' applicability to parents, and to revise terms to clearly state that school contracts do not bind parents to arbitration or other terms under COPPA.

Contract Search Terms

parental consentarbitration clauseCOPPA complianceschool district agreementdata collection consentterms of servicebinding arbitrationchildren's datadata sellingagency relationship

Laws Cited

Children's Online Privacy Protection ActCOPPA Rule

Violation Types

Entity Details

Entity

IXL Learning, Inc.

Also known as: IXL Learning

Industry

Education

Official Sources

Source Evidence

Entity Name
"IXL Learning, Inc."
Laws Cited
"Children’s Online Privacy Protection Act"
Laws Cited
"COPPA Rule"
Violation Types
"illegally collected, used and sold their children’s data"

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