From the good folks at EPIC:
EPIC has filed an extensive complaint with the Federal Trade Commission concerning the business practices of Scholarships.com. The company encourages students to divulge sensitive medical, sexual, and religious information to obtain financial aid information. The company claims that it uses this information to locate scholarships and financial aid. Scholarships.com, however, transfers the data to a business affiliate American Student Marketing, which in turn sells the data for general marketing purposes. EPIC alleges that this is an unfair and deceptive trade practice. EPIC’s complaint also alleges that Scholarships.com’s failure to use reasonable security practices is an unfair trade practices. EPIC has asked the FTC to require the company to change its business practices. Earlier this year, EPIC urged Congress to restore privacy protections for student data following recent changes to the Family Educational Rights and Privacy Act. For more information, see: EPIC: Student Privacy.