For immediate release: May 4, 2025
For more information: Leonie Haimson, leonie@classsizematters.org;
917-435-9329
The audit
from the State Comptroller’s office released today confirms what many NYC
advocates have long known: the privacy policies and practices of the NYC
Dept. of Education are sloppy, irresponsible and show a lack of concern for
keeping students’ personal information safe from breach and misuse.
This makes DOE’s insistent push to rapidly expand the use of Artificial
Intelligence tools in our schools unwarranted, given how these tools represent
an even greater risk to student privacy and safety.
Even more troubling is the DOE contemptuous
response to the auditors’ findings and recommendations to improve their
processes, dismissing nearly each one as unfounded. Altogether, the
audit’s findings reinforce the lack of trust felt by many in DOE’s competence
and caring when it comes to protecting student privacy.
The audit’s findings put
in question the AI guidance’s assurances on DOE’s ability to keep student data
safe
In the recent DOE AI guidance, they repeat
over and over that student privacy is rigorously protected through a
vetting process called ERMA (Enterprise Request Management
Application). Yet the findings in this audit show that DOE’s
privacy processes are inherently defective. The DOE’s lack of
responsiveness and willingness to improve their privacy policies provide yet
more evidence that their rush to expand the use of AI in our schools is
reckless. AI products represent a special risk to student privacy
as many data-mine personal data to improve their products, which violates
the state student privacy law, Ed Law 2D, the NY State Student Privacy law
passed by the legislature in 2014.
The audit’s findings, as well as repeated
data breaches of NYC student data and its illegal use for commercial purposes
reveal the inadequacy of the DOE’s privacy vetting process. As a
member of the Chancellor’s AI Working Group, I along with other members
proposed additional safeguards. These included independent privacy impact
assessments, data security audits, and tests for algorithmic bias that should
be required for any educational product using AI. DOE rejected all these
recommendations. Additional problems with the recently released AI
guidance, including DOE’s refusal to rigorously comply with the state privacy
law, are described in our critique
here.
The findings confirm
DOE’s failure to properly control and safeguard personal student information
The auditors discovered that DOE
maintains no central records as to which vendors and other third parties
have access to student personal information, and that they maintain no written
policies covering data classification, risk assessment, or backup and recovery,
as required by the NIST data security framework specified by Ed Law 2D.
In their response, DOE officials claim
that this conclusion is false, and that they are “able to determine which SIS
or other applications that consume student data are in use by a given school or
office.” Yet just last week, on April 28, 2026, the DOE privacy office
confirmed in an email to a parent that “at this time, there is no Central
list of every educational technology tool used by each school.”
Moreover, according to Ed Law 2D, it is every
parent’s right to know which vendors have access to their children’s data, and
to receive a copy of the data held by those vendors within 45 days of
their request. Yet this right is chronically violated by DOE officials,
and when parents do receive data files from their vendors, the files can be
empty of information.
There are more than 700 companies and
other third parties that have access to personal student data according
to the DOE website, though the number of the ed tech programs used is
likely greater, as some vendors provide schools with more than one
product. The number of products collecting and processing student
data has steadily increased each year, and is even now even more rapidly
growing, as DOE adds new products with AI functionality to be used in
classrooms throughout the city.
Delays in recognizing
and reporting breaches
Because DOE officials do not know which
schools use which products, they are unable to ensure that when data breaches
occur, they are able to inform affected families within the legally required
timeline or identify which data elements may have been exposed.
The auditors reported that there were at
least 141 breaches of NYC personal student data between January 5, 2023
through February 27, 2025, and in 48% of cases, the DOE reported them to
NYSED past the legal deadline of 10 days. In at least one case, it took
over 460 days. DOE also missed the 60 day deadline to inform parents that
their children’s data had been breached in at least 11% of the time. [Note:
60 days is in itself too long; NY law requires breach notification by private
businesses and state agencies within 30 days.]
The Illuminate breach
and problems with their privacy agreement
Some privacy vendor agreements are never even
posted online in violation of the law - like that of Illuminate, which exposed
the data of more than a million NYC current and former students in 2022, and
yet whose privacy agreement was posted online only after the breach
occurred. Even then, the agreement
hinted that the data was not always encrypted, contrary to the requirements
of the law, which turned out to be the case.
The Illuminate example also shows that
DOE does not independently investigate breaches but instead relies on the
unreliable reporting of vendors concerning the number and identity of students
affected. After the data of more than 800,000 current and former NYC students
was breached by Illuminate between late December 2021 and early January 2022,
their families were not notified by DOE until March 25, 2022.
Even worse, in May 2024, more than two years
after the breach, a second round of notifications to families revealed
that about 380,000 more students and former students also had their
information exposed. This was also seven months after Illuminate had
informed DOE of the additional students involved – far exceeding the 60 day
deadline in the law, according to the information
on the DOE website, which states that they started looking into this matter
only after being told by Illuminate that more students were affected in October
2023. This put additional students and former students at risk of
identity theft and more, and unable to promptly acquire the insurance and
credit monitoring offered by the vendor for free.
The PowerSchool breach
and problems with their privacy agreement
After the massive nationwide breach of the
PowerSchool student information system occurred in late December 2024,
parents throughout the country and elsewhere in the state were informed of the
breach in early January 2025. Yet at that time, DOE told a reporter they
were still looking into whether any NYC schools or students were affected.
In fact, DOE refused to confirm which schools
were involved even after Daily News reported
on their names on February 6, 2025, from information relayed by the
State Education Department. Only after the Daily News reported on this
did parents whose children attended these schools receive emails saying DOE was
still looking into this matter. It was not until April 2025
that DOE confirmed to parents that their children’s data had been breached,
long past the 60-day deadline in the law.
To this day, the DOE has refused to post the
names of the NYC schools affected by the PowerSchool breach on
the webpage that reports on data security incidents, despite guidance
from the NYSED that they should do so promptly, to alert the thousands of
former students whose data was also exposed and put at risk of identity theft
and worse.
As the former NYSED Chief Privacy Officer
Louise de Candia wrote on Feb.3, 2025, “ There is no doubt in my mind that
PowerSchool violated Education Law Section 2-d and Part 121 of the regulations
which require compliance with NIST CSF as well as reasonable administrative,
technical and physical safeguards to protect the security, confidentiality and
integrity of PII.”
And yet DOE continues to allow NYC
schools to use as many as 16 other privacy-invasive PowerSchool products,
including Naviance, which is employed in many if not most New York high schools
for college guidance purposes. This is despite the fact that in 2022,
it was reported that Naviance targeted ads for colleges on its
student-facing platform disguised as objective recommendations and was shown to
allow colleges to discriminate by race by targeting ads only to white students.
More recently, it was announced that
PowerSchool had agreed to settle a class action lawsuit alleging that the
Naviance
platform contained ad tracking technology that transmitted a wide range of
student data to Google, Microsoft and a company called Heap, including their
names, ID numbers, graduation years, demographic information, photographs
and survey responses, as well as their private communications with
teachers. This would violate not only state privacy laws but also the
federal wiretapping statute. Even now, the DOE has refused to tell
parents or students about the Naviance agreement or inform them they can
apply for a portion of the $17.25 million settlement.
The fact that the Illuminate and PowerSchool
breaches exposed the data of many thousands of NYC students who had long
graduated or otherwise left the system also shows that the data minimization
and deletion by vendors required by Ed Lawa 2D is not enforced by DOE. More background
here.
To make things worse, the PowerSchool
privacy agreement still posted on the DOE website is clearly non-compliant
with the law, as it says that the company will only conform to the privacy
requirements in federal and state law or in their contract with DOE when it is
“commercially reasonable.”
Other problems
highlighted in the audit and the DOE’s official response
The Comptroller’s office also found
significant weaknesses in DOE’s technical data security controls that should be
corrected, including “issues with system monitoring, unsupported systems, and
firewalls.” Understandably, the auditors only communicated the details of these
security weaknesses to DOE in a separate confidential report. In their
response, DOE makes no commitment to address these technical problems, but
instead says that they would address them separately, within the confidential
report.
In its response, DOE claims to have
made “several improvements to its privacy practices and policies,” including
updating the Chancellor’s Regulation A-820 to “restrict the use of “directory
information.”
In fact, the recent amendment to the
Chancellor’s Regulation weakened the protections for student data, by
redefining a wide and essentially unlimited range of personal student
information, including but not limited to their names, addresses, telephone
numbers, email addresses, photographs, grade level, participation in activities
and sports, and more, as directory data that can be shared with third parties,
even when they are not providing services to schools. Only an unreliable
parent opt out process was provided to prevent these disclosures from
occurring.
Finally, the auditors also revealed that DOE
officials took an inordinate time to respond to their requests; and that
documentation requests took over five months to fulfill, while requests for
meetings took two months to schedule.
Leonie Haimson is the co-chair of the Parent
Coalition for Student Privacy, a member of the NYSED Data Privacy Advisory
Committee, the Chancellor’s Data Privacy Working Group and the Chancellor’s AI
Working Group
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