Xap sued by competitor for selling student information...
One company that provides online services for colleges and college applicants, CollegeNET, has sued another such company for agreeing to sell students' information to student lenders without obtaining permission from the students. Xap Corporation, the defendant in the case counters that they do receive consent from students prior to the release of the students' contact information. Xap gives the students an option to opt in to receiving information about student loans or financial aid. If the student clicks yes, Xap policy permits the information to be passed along to outside loan agencies. CollegeNet alleges in this case that Xap has agreed to sell contact information for such students to the Kentucky Higher Education Assistance Authority at "$10 a head."
This isn't CollegeNet's first time to sue Xap. The company also has a patent-infringement case currently pending against Xap.
CollegeNet's press release on the suit
Chronicle of Higher Education (subscription required)