A major online learning provider has stopped all advertising on its mobile apps for parents after receiving complaints over its handling and sharing of user data.
Satchel, which runs popular online learning software Show My Homework, said it would like to “apologise for any distress” caused after concerns were raised on social media about the way it obtains a user’s consent to use their data - and parents and schools expressed fears about the potential passing of student data to third parties.
The company said it had initially decided to turn advertising on for the parent apps after its hosting costs soared by £80,000 per month during school closures.
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But it announced it would be switching off all adverts on the apps indefinitely after privacy expert Stella criticised its means of seeking permission to allow ad personalisation.
A recent poll by Tes placed Show My Homework among the most popular online learning platforms used by schools during the coronavirus crisis.
According to the company website, Satchel’s products are used by over 1,600 schools, with a third of all UK secondaries using Show My Homework.
Expressing her concerns about the company’s data use on social media, Stella posted a screenshot of a notice from Satchel One, with the caption: “This is NOT how consent works”.
The notice read: “Can we continue to use your data to tailor ads for you?
“You can change your choice anytime for Satchel One in the app settings. Our partners will collect data and use a unique identifier on your device to show you ads.”
It also provided a link for users to “learn how Satchel One and our 198 partners collect and use data”.
Stella asked: ”...if I challenge this and contact ‘help’ - do I lose my account? Where is the opt out from the over 50 partner companies you share my data with?”
Hey @Showmyhomework
This is NOT how consent works
And if I challenge this and contact “help”- do I lose my account? Where is the opt out from the over 50 partner companies you share my data with ? Thx pic.twitter.com/vRUKZ1tMjy
- Stella (@RisuToInu) June 8, 2020
The Satchel One Twitter account replied: “Hi Stella, this is actually not a consent screen, it is just about ad personalisation.
“By not agreeing to our partners collecting data, it does NOT mean that you will lose your account. It simply means you will not see any personalised ads, just generic ones.”
In response to additional concerns that students’ data could be tracked, the company added: ”...we do NOT show any ads for students so no student data is passed onto our partners”.
However, Satchel later decided to scrap advertising on the apps altogether, adding that it will “consult with schools to find alternative solutions”.
A spokesperson said: “When we received these concerns, we listened, and we took the decision to pause advertising the very same day so that we could seek to address these concerns.
“As a result, we commit to not turning back on advertising on parent mobile apps as a mechanism to cover the exceptional costs we are incurring and will consult with schools to find alternative solutions.”
The company said its reasons for introducing ads on the parent apps stemmed from a significant increase in usage during the Covid-19 pandemic, leading to a rise in hosting costs.
“With schools operating remotely we saw their usage increase by over four times the previous levels,” the spokesperson said.
“This, of course, resulted in substantial cost increases across all areas of our business with the most notable expense being our hosting costs, which increased by over £80K per month.
“Although we are in a good financial position, there is no knowing how long these increased costs will go on for, and, conscious of school budgetary constraints, we did not want the increased expenses to be a financial burden for our schools.
“After consideration and seeking extensive legal advice and professional guidance, we took the decision to test limited parent advertising on the parent mobile apps only.
“To be clear, introducing advertising onto our platform was not taken lightly or seen by our executive team as a profit-making exercise but instead a method of covering some of our increased costs during this unprecedented period.”
They added: “On launching the adverts outside of the main platform and only to parents, we then received concerns from some of our parents and schools particularly around ensuring that we were not passing on student data to third parties.
“Throughout this process, guided by our professional advisers, we have remained GDPR compliant and operated on industry best practice.”
This article is part of The Digital Challenge investigative series, which will focus on the developing online learning landscape that schools are having to navigate during and beyond the coronavirus crisis.
