WASHINGTON, D.C. — The Federal Trade Commission (FTC) has intervened in a significant legal battle over children’s online privacy, filing an amicus brief in the lawsuit brought against IXL Learning, Inc. by a group of concerned parents. The case, Shanahan, et al. v. IXL Learning, Inc., accuses the educational service provider of unlawfully collecting and using children’s data, violating several laws, including the Federal Wiretap Act.
IXL Learning, which offers online educational services, sought to enforce arbitration by arguing that school districts, as agents of the parents under the Children’s Online Privacy Protection Act (COPPA), bound the parents to its terms of service. This includes an arbitration clause. However, the FTC contested this interpretation in its brief, stating that neither COPPA nor its rules imply that parents must accept all terms agreed upon by school districts, particularly binding arbitration.
The FTC’s intervention underscores its ongoing efforts to safeguard children’s online privacy. In December 2023, the Commission proposed amendments to the COPPA Rule, aiming to restrict companies from exploiting children’s data for profit. These changes include mandating that targeted advertising be disabled by default and prohibiting the indefinite retention of children’s data. The review of these proposed amendments remains in progress.
By filing the brief in the U.S. District Court for the Northern District of California, the FTC reinforces its commitment to ensuring that parents retain control over their children’s data privacy, challenging any overreach by companies like IXL Learning. The case reflects broader concerns about digital privacy for minors in educational settings, highlighting the need for robust regulatory measures.
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