Edmodo, LLC allegedly collected names, email addresses, phone numbers, device information, and IP addresses of approximately 36 million children under 13 for advertising purposes until approximately September 2022 and “retaining this personal information indefinitely”

Antioch Unified didn’t use it.

The Department of Justice, together with the Federal Trade Commission (FTC), today announced that Edmodo, LLC (Edmodo) has agreed to a permanent injunction and a $6 million civil penalty in connection with its online educational platform, as part of a settlement to resolve alleged violations of the Children’s Online Privacy Protection Act (COPPA), the Children’s Online Privacy Protection Rule (COPPA Rule), and the Federal Trade Commission Act. The civil penalty is suspended due to Edmodo’s inability to pay.

The Edmodo educational platform, sold to schools throughout the United States, enabled teachers to interface with students, including children under 13 years old, to host virtual class spaces, conduct discussions, share materials, make assignments, and provide quizzes and grades, among other things. In a complaint filed in the U.S. District Court for the Northern District of California, the government alleges that, until approximately September 2022, Edmodo collected the personal information of children under 13, including their names, email addresses, phone numbers, device information, and IP addresses. Edmodo allegedly collected such information without providing notice to the children’s parents or obtaining parental authorization to collect such personal information, as required by the COPPA Rule, and used this personal information to enable third parties to display targeted advertising to student users between 2018 and September 2022.

According to a May 2023 article by Human Rights Watch, “Edmodo was a website and app widely used by children in kindergarten, elementary, and middle schools across the US until September 2022, when the company pivoted to only selling its product to governments. The company benefited from explosive demand in 2020, reporting a 1,500 percent increase in users in the first five months of the pandemic as governments and schools rushed to connect children to online learning.

An investigation by Human Rights Watch in May 2022 found that Edmodo was designed with the capacity to surveil children and harvest their personal data for advertising. Our technical analysis found that Edmodo could not only invisibly tag children and identify their devices for the sole purpose of advertising to them, but also enabled other advertisers to do the same by embedding ad-specific third-party code on its platform. After multiple requests for comment, Edmodo told Human Rights Watch in July 2022 that it did ‘not share [its students’] personal data with any Edmodo business partners or third parties.’”

The complaint further asserts that Edmodo was retaining this personal information indefinitely. As of March 2020, Edmodo retained the personal information associated with approximately 36 million student accounts, of which only one million were actively using the platform. This indefinite retention violated COPPA’s requirement that an operator not retain personal information of children for longer than “reasonably necessary to fulfill the purpose for which [the information] was collected.”

The stipulated order, entered by the federal district court yesterday, enjoins Edmodo from collecting personal information from children in a manner that violates the COPPA Rule and prohibits Edmodo from retaining children’s personal information for longer than reasonably necessary to fulfill the purpose for which it was collected. The order also enjoins Edmodo from collecting more personal information than reasonably necessary for a child to participate in any activity offered on its service. It also requires Edmodo to destroy personal information improperly collected from children under age 13 and to comply with reporting, monitoring, and recordkeeping requirements. Edmodo is also subject to a civil penalty judgment of $6 million dollars, which is suspended due to Edmodo’s inability to pay.

“Children do not lose their privacy protections when they use the internet,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “Congress and the FTC have established rules to govern websites and apps collecting and storing the personal information of children. The settlement being announced today demonstrates the Department of Justice’s resolve to enforce those rules. We will continue to work with our partners at the FTC to safeguard children’s online privacy.”

“The Justice Department takes seriously its mission to protect the online privacy rights of children and their parents. This order spells out clearly to all online providers that it is unacceptable to collect children’s personal information without their parents’ consent,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The department is committed to protecting against unauthorized online collection and retention of information, especially from children.”

“This order makes clear that ed tech providers cannot outsource compliance responsibilities to schools, or force students to choose between their privacy and education,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Other ed tech providers should carefully examine their practices to ensure they’re not compromising students’ privacy.”

This matter was handled by Assistant U.S. Attorney Vivian Wang for the Northern District of California, Senior Trial Attorney James T. Nelson and Assistant Director Lisa Hsiao of the Civil Division’s Consumer Protection Branch, and Gorana Neskovic and Peder Magee of the FTC.

Antioch Unified Didn’t Use Edmodo’s Technology

Superintendent Stephanie Anello said the Antioch Unified School District did not use Edmodo’s technology for online education during COVID.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at www.FTC.gov.

Allen D. Payton contributed to this report.

As published in the June/July 2023 print edition

Contra Costa part of multi-county lawsuit

By Ted Asregadoo, PIO, Contra Costa District Attorney’s Office

The Contra Costa District Attorney’s Office announces that PetSmart LLC entered into a Stipulated Judgement on June 23rd and will pay $1.46 million for overcharging customers, false advertising, and unfair competition.

District Attorney Diana Becton said that “The law in California is clear: businesses must be accurate in charging for goods and services. For customers, it’s important to monitor items scanned at a register and scrutinize your receipts to make sure you are not being overcharged.”

The outcome of the multi-county lawsuit against PetSmart includes court orders that prohibit the company from engaging in false or misleading advertising and charging an amount greater than the lowest price posted for an item. Moreover, PetSmart must implement additional audit and price accuracy procedures in its California stores for a three-year period to ensure compliance with pricing accuracy requirements, including notifying customers of their right to be charged the lowest currently advertised price for any item offered for sale.

PetSmart will pay $1,250,000 in civil penalties, $100,000 in restitution to support consumer protection enforcement efforts, and $110,000 for investigative costs incurred by various counties. Because of this legal action, PetSmart has implemented new policies and procedures to improve pricing accuracy with routine audits, detailed record keeping, and in-store signage to notify customers about the lowest advertised price for items.

The lawsuit was filed in Santa Cruz County. In addition to Contra Costa County, Plaintiffs include Sonoma County, Alameda County, Marin County, San Diego County, Ventura County, and Los Angeles County. Deputy District Attorney Bryan Tierney prosecuted the case for the Contra Costa County District Attorney’s Office – with assistance by the Contra Costa Department of Agriculture/Weights & Measures.

If members of the public believe they have been overcharged by businesses, contact our office at: DA-ReportFraud@contracostada.org.

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By Allen D. Payton

On Friday afternoon, Antioch Mayor Lamar Thorpe issued a statement of support for new Acting City Manager Kwame Reed, the City’s Economic Development Director, who was appointed to the temporary position that morning. In addition, the Antioch Chamber of Commerce also issued a statement of support for Reed. He was appointed on a 4-0 vote of the city council during a special, closed session meeting. (See related article)

In the post on his official Facebook page Thorpe wrote, “Earlier today, the City Council appointed Kwame Reed as the city’s acting city manager until further notice.

Mr. Reed has been with the city of Antioch for close to 5 years in the role of Economic Development Director. He has a public sector career that spans more than 28 years. For most of his career, he has worked for cities in Eastern Contra Costa County. He has a degree in City and Regional Planning from Cal Poly State University in San Luis Obispo.

I want to personally thank outgoing acting city manager, Forrest Ebbs for stepping up to hold the ship steady while the city navigated some unexpected changes.

Congratulations on Mr. Ebbs’ recent appointment as Deputy City Manager for the City of Modesto.

I want to assure Antioch residents, our city employees, and partners that the City’s leadership remains focused and UNITED on our top priority of increasing our overall quality of life and ensuring public safety. Antioch’s government continues to be open for business and working for the people.

I have personally been briefed by all of our department heads and they continue to assure me that they are committed to this mission and that they will continue moving forward with clarity, and a focus on delivering key services.”

On the Chamber’s Facebook page was posted the “Antioch Chamber of Commerce Official Statement regarding appointment of Kwame Reed as city’s acting city manager:

Earlier today, the City Council appointed Kwame Reed as the city’s acting city manager.

‘On behalf of the Antioch Chamber of Commerce Organization, I’d like to congratulate the City of Antioch on the outstanding appointment of Kwame Reed as the Cities Acting- City Manager. There is no doubt in my mind that Kwame’s tireless work on behalf of Antioch’s Enterprise & Commerce Community is unmatched and that he is ready to take on this important Leadership role during such a critical transition period for the City of Antioch,’ said Daniel Sohn, President/ CEO for the Antioch Chamber of Commerce.

Last year, the Antioch Chamber presented Mr. Reed with an award for his results-oriented work on behalf of Antioch businesses in his capacity as Antioch’s Director of Economic Development.” (See related article)

Reed began is additional duties on Friday afternoon, as Ebbs returned to his position as the City’s Community Development Director and was heading out for a two week vacation before ending his time with Antioch on July 14.

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By Allen D. Payton

During their Tuesday, June 13, 2023, meeting, the Antioch City Council re-approved the revised tobacco product sales ordinance on a 3-2 vote and a rental registry with a future tax on landlords to pay for it on a 4-1 vote. With 12 items on the agenda and 19 items on the Consent Calendar, the meeting lasted until almost midnight violating the direction the council majority said they wanted to go at last Tuesday’s special meeting during discussion of the agenda items.

Re-Approve Revised Tobacco Products Sales Ordinance

On an expected 3-2 vote, with Mayor Lamar Thorpe and District 4 Councilwoman Monica Wilson voting against, the council majority re-approved the revision to the tobacco products sales ordinance which contains the following:

1. The terminology and definitions of flavored tobacco were amended to better align with State terms and definitions.

2. The prohibition on package size and price was eliminated. The prior language restricted the sale of small cigars (cigarillos) to minimum packs of 20, large cigars to minimum packs of 10, and required a minimum sales price for cigarettes of $10.

During the second reading of the ordinance, Mayor Pro Tem Tamisha Torres-Walker and Thorpe were absent. Instead of postponing the item, the remaining three council members voted 2-1 with Wilson voting no, as she had done during the vote on the first reading, requiring the item be brought back for a first vote, again. Although it was approved, the item must be brought back for a vote on the second reading at the next council meeting.

Approves Rental Registry with Future Tax on Landlords

The council also approved on another split vote the creation of a Rental Registry with a future Rent Program fee, or tax on landlords to pay for it.

According to the city staff report, the Rent Stabilization Ordinance (RSO) currently requires the establishment of a registry of regulated units. This ordinance will have a marginal fiscal impact in expanding application of the registry program, which would be funded through a Rent Program fee if adopted at a future date.

Staff determined that it would be prudent to require registration of all residential rental units in the City rather than only apartment complexes. If the City Council adopts additional tenant protections, such as just cause eviction, those protections would likely apply to a wider scope of rental units. Registration of such additional units would aid in the administration of the additional protection policies. A Citywide program would also allow the registration component to be a requirement for a complete application rather than an opt-in system.

The Proposed Ordinance would authorize a consolidated Citywide registration program to clarify and establish the authority of the Finance Department to administer the Rental Unit Registry and collect tenant program fees. It would also authorize the Rent Program and Finance Department to utilize an alternative means of registering rental units on properties containing five or more units.”

One of the speakers said she wants the system to also track evictions.

District 3 Councilwoman Lori Ogorchock moved approval and Torres-Walker seconded the motion.

Barbanica asked, “what information on this registry do you plan to include and

“The business license fee registers the owner at the property,” said Assistant City Attorney Rachel Hundley. “You get to know the units but you don’t get to know the details….more specific information such as the deeds…inspection violations.”

“So, you’re looking to really pry into those property owners’ personal business?” he asked.

“No,” she responded.

The motion then passed 4-1 with Barbanica, who is a real estate broker and property manager, voting against.