In re National Research Center for College and University Admissions, Inc.

The National Research Center for College and University Admissions, Inc. (NRCCUA) and American Student List, LLC (ASL) (defendants) paid to produce and distribute an annual survey to high-school students. The survey collected students’ personal information, including names, addresses, gender, race, ethnicity, religions, grades, athletic and extracurricular activities, and academic and career interests. NRCCUA promoted the survey to educators, parents, and students, seeking to encourage students to participate in the survey. In promotional materials, NRCCUA stated that the survey data were used by its members, which consisted of over 850 colleges and universities, to contact students who might be a good fit for their institutions. Students would receive information concerning admissions, scholarships, and financial planning. NRCCUA thus claimed that the service helped students navigate the transition from high school to college. Further, NRCCUA’s materials stated that the service was free to students and their families because it was funded by NRCCUA’s members. The promotional materials failed to explain that the survey was also funded by ASL and other companies and that those companies sold survey data to commercial entities for marketing purposes. The Federal Trade Commission (FTC) (plaintiff) filed a complaint against NRCCUA, NRCCUA officer Don Munce (defendant), and ASL, alleging that their practices concerning the survey violated § 5(a) of the Federal Trade Commission Act. The parties entered settlement negotiations that resulted in the FTC’s issuance of a consent decree.