Illuminate Education, Inc.; Analysis of Proposed Consent Order To Aid Public Comment
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Abstract
The consent agreement in this matter settles alleged violations of Federal law prohibiting unfair or deceptive acts or practices. The attached Analysis of Proposed Consent Order to Aid Public Comment describes both the allegations in the complaint and the terms of the consent order--embodied in the consent agreement--that would settle these allegations.
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<title>Federal Register, Volume 90 Issue 231 (Thursday, December 4, 2025)</title>
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[Federal Register Volume 90, Number 231 (Thursday, December 4, 2025)]
[Notices]
[Pages 55868-55869]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-21892]
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FEDERAL TRADE COMMISSION
[File No. 222 3105]
Illuminate Education, Inc.; Analysis of Proposed Consent Order To
Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement; request for comment.
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SUMMARY: The consent agreement in this matter settles alleged
violations of Federal law prohibiting unfair or deceptive acts or
practices. The attached Analysis of Proposed Consent Order to Aid
Public Comment describes both the allegations in the complaint and the
terms of the consent order--embodied in the consent agreement--that
would settle these allegations.
DATES: Comments must be received on or before January 5, 2026.
ADDRESSES: Interested parties may file comments online or on paper by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Please write ``Illuminate;
File No. 222 3105'' on your comment and file your comment online at
<a href="https://www.regulations.gov">https://www.regulations.gov</a> by following the instructions on the web-
based form. If you prefer to file your comment on paper, please mail
your comment to: Federal Trade Commission, Office of the Secretary, 600
Pennsylvania Ave. NW, Mail Stop H-144 (Annex E), Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Bhavna Changrani (202-326-2363),
Attorney, Division of Privacy and Identity Protection, Bureau of
Consumer Protection, Federal Trade Commission, 400 7th St. SW,
Washington, DC 20024.
SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule Sec. 2.34, 16 CFR
2.34, notice is hereby given that the above-captioned consent agreement
containing a consent order to cease and desist, having been filed with
and accepted, subject to final approval, by the Commission, has been
placed on the public record for a period of 30 days. The following
Analysis to Aid Public Comment describes the terms of the consent
agreement and the allegations in the complaint. An electronic copy of
the full text of the consent agreement package can be obtained at
<a href="https://www.ftc.gov/news-events/commission-actions">https://www.ftc.gov/news-events/commission-actions</a>.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before January 5, 2026.
Write ``Illuminate; File No. 222 3105'' on your comment. Your comment--
including your name and your State--will be placed on the public record
of this proceeding, including, to the extent practicable, on the
<a href="https://www.regulations.gov">https://www.regulations.gov</a> website.
Because of heightened security screening, postal mail addressed to
the Commission will be subject to delay. We strongly encourage you to
submit your comments online through the <a href="https://www.regulations.gov">https://www.regulations.gov</a>
website. If you prefer to file your comment on paper, write
``Illuminate; File No. 222 3105'' on your comment and on the envelope,
and send it via overnight service to: Federal Trade Commission, Office
of the Secretary, 600 Pennsylvania Avenue NW, Mail Stop H-144 (Annex
E), Washington, DC 20580.
Because your comment will be placed on the publicly accessible
website at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, you are solely responsible for
making sure your comment does not include any sensitive or confidential
information. In particular, your comment should not include sensitive
personal information, such as your or anyone else's Social Security
number; date of birth; driver's license number or other State
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure your comment does not include
sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . is privileged or confidential''--as provided by
section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule Sec.
4.10(a)(2), 16 CFR 4.10(a)(2)--including competitively sensitive
information such as costs, sales statistics, inventories, formulas,
patterns, devices, manufacturing processes, or customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule Sec. 4.9(c). In
particular, the written request for confidential treatment that
accompanies the comment must include the factual and legal basis for
the request and must identify the specific portions of the comment to
be withheld from the public record. See FTC Rule Sec. 4.9(c). Your
comment will be kept confidential only if the General Counsel grants
your request in accordance with the law and the public interest. Once
your comment has been posted on the <a href="https://www.regulations.gov">https://www.regulations.gov</a>
website--as legally required by FTC Rule Sec. 4.9(b)--we cannot redact
or remove your comment from that website, unless you submit a
confidentiality request that meets the requirements for such treatment
under FTC Rule Sec. 4.9(c), and the General Counsel grants that
request.
Visit the FTC website at <a href="https://www.ftc.gov">https://www.ftc.gov</a> to read this document
and the news release describing the proposed settlement. The FTC Act
and other laws the Commission administers permit the collection of
public comments to consider and use in this proceeding, as appropriate.
The Commission will consider all timely and responsive public comments
it receives on or before January 5, 2026. For information on the
Commission's privacy policy, including routine uses permitted by the
Privacy Act, see <a href="https://www.ftc.gov/site-information/privacy-policy">https://www.ftc.gov/site-information/privacy-policy</a>.
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission (``Commission'') has accepted, subject
to final approval, an agreement containing a consent order from
Illuminate Education, Inc. (``Respondent''). The proposed consent order
(``proposed order'') has been placed on the public record for 30 days
for receipt of public comments from interested persons. Comments
received during this period will become part of the public record.
After 30 days, the Commission will again review the agreement, along
with the comments received, and will decide whether it should make
final the proposed order or withdraw from the agreement and take
appropriate action.
Respondent is a California corporation with its principal place of
business in Wisconsin Rapids, WI. Respondent offers schools and
districts a suite of software products and solutions, such as the IO
Suite,\1\ to help manage student information, assess literacy, track
grades, communicate with parents, and determine students' academic and
social-emotional behavior learning needs. In the course of providing
its products and services, Respondent stores personal information of
millions of students. The personal information includes students' name
and address, parent contact information, grades, whether the student
has specialized learning plans in place (such as Individualized
Education Plans (IEP) or 504 Plans which can reveal
[[Page 55869]]
special needs or disabilities), or whether the student receives free or
reduced lunch.
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\1\ The IO suite of programs includes IO Admin, IO Assessment,
IO Auth, IO Classroom, IO Compass, IO Insights, IO Messenger, and
Data Driven Classroom.
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The proposed complaint alleges that despite representing to school
districts, students and their parents that it would keep their student
personal information safe, Respondent failed to utilize reasonable
information security measures to do so. The proposed complaint alleges
that as a result of Respondent's unreasonable information security
practices, a threat actor infiltrated Respondent's network, had
unfettered access to students' personal information for 13 days, and
exfiltrated millions of students' personal information.
The Commission's proposed three-count complaint alleges that
Respondent violated Section 5(a) of the FTC Act by (1) unfairly failing
to employ reasonable information security practices to protect
students' personal information, (2) misrepresenting to school
districts, students and their parents that it took reasonable steps to
protect student personal information, and (3) misrepresenting to school
districts that it would provide timely notifications regarding breach
or unauthorized disclosure. With respect to the first count, the
proposed complaint alleges that Respondent:
(a) stored, until at least January 2022, students' personal
information in Illuminate's network in S3 buckets in plaintext, rather
than encrypting the information;
(b) failed to implement reasonable access controls to safeguard
students' personal information stored in AWS services;
(c) failed to employ effective threat detection and response on its
network and databases;
(d) failed to employ effective vulnerability monitoring and patch
management practices;
(e) improperly configured, or failed to implement, logging and
monitoring tools to appropriately capture and alert on suspicious data
security events;
(f) failed, until at least November 2022, to establish a
comprehensive incident management or incident response plan; and
(g) failed, until at least March 2022, to have a policy, process,
or procedure for inventorying and deleting students' personal
information stored on Illuminate's network after that information is no
longer necessary.
The proposed complaint alleges that Respondent could have addressed
each of these failures by implementing readily available and relatively
low-cost security measures. It also alleges that Respondent's failures
caused, or are likely to cause, substantial injury to consumers that is
not outweighed by countervailing benefits to consumers or competition
and is not reasonably avoidable by consumers themselves. Such practices
constitute unfair acts or practices under Section 5 of the FTC Act.
With respect to the second count, the proposed complaint alleges
that, at various times, Respondent represented to school districts,
students and their parents that it used reasonable measures to protect
student personal information. The proposed complaint alleges that, in
reality, and as noted above, Respondent failed to implement reasonable
measures to protect students' personal information. Such
representations were, therefore, deceptive under Section 5 of the FTC
Act.
Finally, the third count of the proposed complaint alleges that at
various times Respondent represented that it would provide timely
notifications to school districts whose data has been exposed as a
result of a breach or unintended disclosure. The proposed complaint
alleges that Respondent failed to timely notify school districts whose
data had been exposed due to a breach or unintended disclosure. Such
representations were, therefore, deceptive under Section 5 of the FTC
Act.
Summary of Proposed Order With Respondent
The proposed order contains injunctive relief designed to prevent
Respondent from engaging in the same or similar acts or practices in
the future.
Part I prohibits Respondent from misrepresenting (1) the extent to
which it protects the privacy, security, availability, confidentiality,
or integrity of any covered information; and (2) the time period in
which Respondent will notify school districts and students of a breach
or unintended disclosure of any covered information as defined in the
proposed order.
Part II requires that Respondent delete or destroy covered
information that is not being retained in connection with providing
products or services under Respondent's contracts with its customers or
as requested by Respondent's customers.
Part III requires that Respondent document and adhere to a
retention schedule for the covered information it collects from
consumers, including the purposes for which it collects such
information and the timeframe for its deletion.
Part IV requires Respondent to establish and implement, and
thereafter maintain, a comprehensive information security program that
protects the security, availability, confidentiality, and integrity of
covered information.
Part V requires Respondent to obtain initial and biennial
information security assessments by an independent, third-party
professional for 10 years. Part VI requires Respondent to disclose all
material facts to the assessor required by Part V and prohibits
Respondent from misrepresenting any fact material to the assessments
required by Part V.
Part VII requires Respondent to submit an annual certification from
the Chief Information Security Officer responsible for its information
security program that the company has implemented the requirements of
the Order and is not aware of any material noncompliance that has not
been corrected or disclosed to the Commission. Part VIII requires
Respondent to notify the Commission any time it notifies a federal,
state, or local government that information of or about a consumer was,
or is reasonably believed to have been, accessed, acquired, or publicly
exposed without authorization.
Parts IX-XII are reporting and compliance provisions, which include
recordkeeping requirements and provisions requiring Respondent to
provide information or documents necessary for the Commission to
monitor compliance.
Part XIII states that the proposed order will remain in effect for
10 years, with certain exceptions.
The purpose of this analysis is to facilitate public comment on the
proposed order, and it is not intended to constitute an official
interpretation of the complaint or proposed order, or to modify the
proposed order's terms in any way.
By direction of the Commission.
April J. Tabor,
Secretary.
[FR Doc. 2025-21892 Filed 12-3-25; 8:45 am]
BILLING CODE 6750-01-P
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