Student Marketing Group Settles With FTC

Share this article:
Less than a month after settling a similar lawsuit, Student Marketing Group Inc. and the Educational Research Center of America said yesterday that they settled a deceptive-trade-practices claim with the Federal Trade Commission.


The FTC alleged that the organizations used deceptive practices in the collection of student information by not disclosing that the data would be used to market non-educational products and services.


Student Marketing Group, which specializes in data for the child and young-adult markets, has used its not-for-profit arm Educational Research Center of America to distribute surveys funded by the company to teachers yearly since 1999.


Accompanying the surveys were cover letters explaining that data collected would be used by universities and colleges as well as financial aid and student scholarship agencies. However, the data were sold and used to market non-educational products and services, a use not disclosed in the letter.


While the list brokerage and nonprofit settled to avoid litigation, neither admitted to any wrongdoing or violation of law. They did agree to ensure that future efforts to collect personally identifiable information include specific disclosures that the information may be used for non-educational marketing purposes. No penalties were paid, according to the firms.


"We are pleased to put this issue behind us," Jan Stumacher, president of Student Marketing Group, Lynbrook, NY, said in a statement. "We believe that the settlement reflects our view that there was no attempt to mislead students, but simply a disagreement over the level of detail that should be provided in connection with the collection of information."


The FTC could not be reached for comment.


The organizations reached a similar settlement with the New York state attorney general Jan. 8.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in News

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

DMA 2014 Kicks Off Under New Management

DMA 2014 Kicks Off Under New Management

Thomas Benton and Jane Berzan will preside over an event indicative of an association serving a wider array of industry segments.

De Quinto Tapped as Coke's Next CMO

De Quinto Tapped as Coke's Next CMO

The president of the company's Iberia Business Unit will take over from Joe Tripodi upon his retirement in February.

Customer Centricity Is Spurring Marketing-Tech Investments

Customer Centricity Is Spurring Marketing-Tech Investments

A majority of marketers rank customer satisfaction improvements as paramount in the technology investment decisions.