Existing law prohibits various specified advertising practices, including, among others, the placement by an educational travel organization, as defined, or use of any misleading or untruthful advertising or statements or making of a substantial misrepresentation in conducting an educational travel program. Under existing law, the violation of any of these prohibitions is a misdemeanor.

This bill would require an educational conference organization, as defined, that provides materials related to an educational conference, as defined, directly to a school or school employee for purposes of distribution to a student to include specified disclosures with the materials, to provide those disclosures to the school and specified school employees, and to provide the materials in a sealed envelope or other packaging addressed to the parent or legal guardian of the student. As a violation of these provisions would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law prohibits various specified advertising practices, including, among others, the placement by an educational travel organization, as defined, or use of any misleading or untruthful advertising or statements or making of a substantial misrepresentation in conducting an educational travel program. Under existing law, the violation of any of these prohibitions is a misdemeanor.

This bill would require an educational conference organization, as defined, that provides materials related to an educational conference, as defined, directly to a school or school employee for purposes of distribution to a student to include specified disclosures with the materials, to provide those disclosures to the school and specified school employees, and to provide the materials in a sealed envelope or other packaging addressed to the parent or legal guardian of the student. As a violation of these provisions would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law prohibits various specified advertising practices, including, among others, an educational travel organizations, as defined, placement or use of any misleading or untruthful advertising or statements or making of a substantial misrepresentation in conducting an educational travel program. Under existing law, the violation of any of these prohibitions is a misdemeanor.

This bill would require an educational conference organization, as defined, that provides materials related to an educational conference, as defined, directly to a school or school employee for purposes of distribution to a student to include specified disclosures in with the materials materials, to provide those disclosures to the school and specified school employees, and to provide the materials in a sealed envelope or other packaging addressed to the parent or legal guardian of the student. As a violation of these provisions would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law prohibits various specified advertising practices, including, among others, a prohibition on an educational travel organization, as defined, from placing or using organizations, as defined, placement or use of any misleading or untruthful advertising or statements or making of a substantial misrepresentation in conducting an educational travel program. Under existing law, the violation of any of these prohibitions is a misdemeanor.

This bill would require an educational conference organization, as defined, that provides materials related to an educational conference, as defined, directly to a school or school employee for purposes of distribution to a student to include specified disclosures in the materials and to provide the materials in a sealed envelope or other packaging addressed to the parent or legal guardian of the student. The bill would also prohibit the organization from addressing the materials to a student by name or otherwise requesting that materials be provided directly to the student. As a violation of these provisions would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law prohibits various specified advertising practices, including, among others, a prohibition on an educational travel organization, as defined, from placing or using any misleading or untruthful advertising or statements or making a substantial misrepresentation in conducting an educational travel program. Under existing law, the violation of any of these prohibitions is a misdemeanor.

This bill would require an educational conference organization, as defined, that provides materials related to an educational conference, as defined, directly to a school or school employee for purposes of distribution to a student to include specified disclosures in the materials and to provide the materials in a sealed envelope or other packaging addressed to the parent or legal guardian of the student. The bill would also prohibit the organization from addressing the materials to a student by name or otherwise requesting that materials be provided directly to the student. As a violation of these provisions would be a crime, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

 CONSENT 

Bill No: AB 2609

Author: Chau (D)

Amended: 5/10/16 in Assembly

Vote: 21

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 9-0, 6/13/16

AYES: Hill, Bates, Block, Gaines, Galgiani, Hernandez, Jackson, Mendoza, Wieckowski

SENATE JUDICIARY COMMITTEE: 7-0, 6/28/16

AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 67-0, 5/27/16 (Consent) - See last page for vote

SUBJECT: Advertising: educational conferences

SOURCE: Author

DIGEST: This bill requires for-profit educational conference organizations, as defined, that provide solicitation materials directly to a school for purposes of distribution to a student, to include specified disclosures in those materials and to provide the materials in a sealed envelope addressed to the parent or guardian of the student and to provide the disclosures on separate documents addressed to the school and to any employee thereof who is asked to distribute materials to a student.

ANALYSIS:

Existing law:

1. Protects, pursuant to the federal Family Educational Rights and Privacy Act (FERPA), the privacy of student education records and specifies that it applies to all schools that receive funds under an applicable program of the U.S. Department of Education. FERPA requires that schools, with certain exceptions, obtain a parent or guardian’s written consent prior to the disclosure of personally identifiable information from a child’s education records.
   (20 U.S.C. § 1232g; 34 CFR Part 99)
2. Defines an “educational travel organization” (ETO) as a person, partnership, corporation, or other entity who offers educational travel programs for students residing, in the State of California, and included an educational program as a component, and defines a “student traveler” as a person who is enrolled in K-12 at a time an educational travel program is arranged with an ETO. (Business and Professions Code (BPC) § 17552)
3. Prohibits, pursuant to the Student Online Personal Information Protection Act, an operator of a website, online service, online application, or mobile application from knowingly engaging in targeted advertising to students or their parents or legal guardians, using covered information to amass a profile about a K–12 student, selling a student’s information, or disclosing covered information, unless otherwise specified. (BPC § 22584(b))

This bill:

1. Defines an “educational conference” to mean a conference, forum, camp, or other similar event, intended to develop the leadership, career or college readiness of a student, or provide some other form of educational benefit, when
   participation in the event is represented as being limited to students receiving an award, invitation or nomination to participate in the event. Defines an “educational conference organization” (ECO) to mean a person, partnership, corporation, or other entity that operates in a for-profit manner and that plans and advertises educational conferences to students residing in California.
   
2. Requires an ECO that provides materials related to an educational conference directly to a school or employee for purposes of distribution to a student to comply with all of the following:
3. Provide materials in a sealed envelope or other packaging addressed to the parent or legal guardian of the student.
4. Include with the materials all of the following disclosures, in clear and conspicuous language:
   
5. That the materials constitute a solicitation for the sale of a product.
6. The legal form of the organization making the solicitation, including the for-profit status of the organization.
7. The legal owner, if any, of the organization making the solicitation.
8. The specific eligibility criteria required for participation in the solicited educational conference or conferences, if any.
9. An itemized list of the costs to participate in the educational conference and the total price of participating in the educational conference, including estimated expenses not included in the price of the educational conference.
10. That attendance at an educational conference may not affect a student's chances of being admitted to college, and that a parent or guardian should contact the student's school counselor for more information.
11. Whether or not a nomination from a teacher or school administrator is required to participate in the educational conference, or if an individual may be self-nominated or nominated by a parent or guardian.
12. The total amount, if any, of funding or other support, including employment or grants for school supplies, the organization has provided to the student’s school or the school’s employees during the last three years before the date of the solicitation.
13. A phone number, email address, or website that a parent or guardian may use to contact a relevant government agency for purposes of filing a complaint related to the solicitation or the educational conference itself.
14. Requires the ECO to provide the disclosures described above on separate documents addressed to the school and to any employee thereof who is asked to distribute materials to a student.
    
15. Makes legislative findings and declarations pertaining to the importance of protecting students from false or misleading advertising, promoting high-quality educational conference experiences, and encouraging public confidence in youth leadership conferences by establishing appropriate marketing restrictions and disclosure requirements on for-profit educational conference solicitations.

Background

The Educational Conference Industry. Educational conferences go by a variety of different names: youth leadership camps, experiential learning programs, and prestige conferences, but what they all have in common is that they provide school-aged children who are seeking extra-curricular activities for personal enrichment, civic engagement or even an advantage with future college admissions. However, these programs vary widely from one another in their marketing, admissions criteria, selection processes, and costs to participate.

Perhaps the most well-known example of an educational conference provider is the American Legion’s Boys and Girls State, which was founded in 1935 to allow students to study the operation of local, county and state government by participating in activities such as legislative sessions or court proceedings during their annual conferences. Legion Posts select high school juniors based on recommended guidelines that include interviews to evaluate merit and ability in
order to attend their program. In most cases, individual expenses are paid by a sponsoring post, a local business or another community-based organization.

Rotary International also offers several programs for youth such as the Rotary Youth Leadership Awards, which is a leadership development program that hosts events that include presentations, activities, and workshops that cover a variety of topics. Participants are nominated by their local Rotary clubs, which often cover all expenses. Both the American Legion and Rotary programs are organized as non-profits.

There are also programs offered by for-profit companies, such as the Junior National Young Leaders Conference, the National Youth Leadership Forum, or the Global Young Leaders Conference. These programs solicit their participants through a "nomination" process that relies on teachers to identify potential participants from among their own students, and can cost hundreds or even thousands of dollars to participate.

Consumer Protection Concerns about ECOs and their Nomination Process. According to a New York Times article in April of 2009, “Congratulations! You are Nominated. It’s an Honor (It’s a Sales Pitch)”, students are receiving conference solicitations that “looked and sounded more like an Academy Award than a sales pitch. In fancy script, on weighty card stock adorned by a giant gold seal . . .[it] promised a ‘lifetime advantage’ and ‘valuable addition’ to her resume. It used words like ‘elite,’ distinguished,’ ‘select.’”

Students who receive these offers may be led to believe that attendance at these conferences is a highly selective honor because of statements in the solicitation materials that call nominees “the nation’s most highly acclaimed students” and “most promising young leaders of tomorrow.” However, according to the article, “there are no hard and fast criteria for nominators. . . .The nomination form asks for nothing beyond the student’s name, address, school year and sex.”

Eligibility criteria may also be vague, or even non-existent. For example, the website of one ECO (Envision EMI) suggests that educators nominate students who “show special academic promise, aspirations, and leadership potential, can meet the challenges of the program’s rigorous curriculum, and will be mature and confident contributors to group and program activities.” However, no quantifiable criteria, such as grade point average, are provided, and the nomination process (requiring the student's name and address) can be completed online.

The cost of for-profit conferences is also raised as an issue. The Times article describes one program (Envision EMI's week-long Congressional Youth Leadership Council (CYLC)) that can costs upwards of $2,200, with airfare and meals not included, which students are encouraged to pay for through community fundraising: “Needy students are typically sent a brochure with fund-raising ideas and success stories of other students who have tapped friends, family and community to help pay their way....” In 2006, 1.7% of the revenues for Envision's CYLC program went to grants and scholarships.

FERPA and Access to Directory Information. Although there are several federal and state laws in place designed to protect student privacy, certain exceptions exist that allow a student’s information to be released to outside organizations. For instance, FERPA permits schools to disclose “directory information,” defined as information that is generally not considered harmful or an invasion of privacy if released, without written consent to a third party, which can include companies that manufacture class rings or publish yearbooks.

Because ECOs are only accessing directory information when asking teachers to nominate students, a FERPA violation does not arise.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes

SUPPORT: (Verified 8/3/16)

California Teachers Association

Common Sense Kids Action

OPPOSITION: (Verified 8/3/16)

None received

ARGUMENTS IN SUPPORT: Supporters indicate that currently, some for-profit event planning companies are delivering their marketing materials for expensive conferences directly through public schools. By their own description, these solicitations may appear to be an exclusive nomination to attend a prestigious youth leadership conference, when in fact they are simply a sales pitch for a conference that can cost thousands of dollars. These solicitations are delivered by a trusted source; the student’s teacher. Supporters believe this bill will clear up any confusion for the teacher about whether the student is receiving a competitive honor or whether it is in fact a solicitation for a commercial purpose.

ASSEMBLY FLOOR: 67-0, 5/27/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bonilla, Bonta, Burke, Calderon, Campos, Chang, Chau, Chávez, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Harper, Roger Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder, Lopez, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Nazarian, Obernolte, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

NO VOTE RECORDED: Bloom, Brough, Brown, Chiu, Dodd, Eduardo Garcia, Grove, Hadley, Jones-Sawyer, Low, Melendez, O'Donnell, Ting

Prepared by: Bill Gage / B., P. & E.D. / (916) 651-4104

8/3/16 18:05:06

**** END ****

SENATE JUDICIARY COMMITTEE

Senator Hannah-Beth Jackson, Chair

2015-2016 Regular Session

Bill No: AB 2609 (Author:Chau)

Version: May 10, 2016

Hearing Date: June 28, 2016

Fiscal: Yes

Urgency: No

Consultant: TH

SUBJECT

Advertising: Educational Conferences

DESCRIPTION

This bill requires an educational conference organization that provides materials related to an educational conference directly to a school or school employee for purposes of distribution to a student to include specified disclosures with the materials, to provide those disclosures to the school and school employees, and to provide the materials directly to the parent or legal guardian of the student.

BACKGROUND

According to a 2009 New York Times article, an event planning company called Envision EMI uses teachers and school employees to generate leads for its educational leadership conferences. Teachers are asked to identify and nominate high-achieving students to attend these conferences, and, using that information, the company sends conference marketing materials directly to students describing the event as an “honor” or “prestigious opportunity” without disclosing that the conferences are not as selective as the company’s marketing suggests. Describing some students’ experiences with the company, the article states:

The offer that arrived in Emily Wharton’s mailbox looked and sounded more like an Academy Award than a sales pitch. In fancy script, on weighty card stock adorned by a giant gold seal, the letter congratulated Ms. Wharton for the honor of being nominated to attend the National Young Leaders Conference in Washington, D.C. It counted 366 members of the United States Congress on its honorary Congressional board of advisers. It told her that she would represent the state of New York and promised a “lifetime advantage” and “valuable addition” to her résumé. It used words like “elite,” “distinguished,” “select.”

. . .

The company that organized the conference, a direct-mail powerhouse called the Congressional Youth Leadership Council, runs an alphabet soup of such conferences that it says are attended by 50,000 students a year. It solicits recommendations from teachers and alumni of previous conferences, and it culls names from mailing lists, for which the council paid $263,000 in 2006 alone, according to its last filing with the Internal Revenue Service, before it gave up its nonprofit status.

Philippa Wharton has saved all the solicitations, she says, “because they irritate me.” “I like to build my kids up, but on real accomplishments,” she says. “It’s just too much. Instead of coming right out and saying, ‘We organize these wonderful trips to Washington, and you can meet all these other kids who are interested in government and motivated,’ they play up the honor angle. It’s like a marketing scam.”

. . .

“You’re told it’s very selective, it wasn’t at all,” says Rasheed Hamdan, a graduate of American Military University. He flew in from Baja California Sur, Mexico, for the conference, the first he had ever attended. He had special business cards printed up and bought a tuxedo for an advertised black-tie gala, which turned out not to be formal or an official ball but, he says, a “glorified prom night.” (Diana Jean Schemo, Congratulations! You Are Nominated. It’s an Honor. (It’s a Sales Pitch.), New York Times (April 13, 2009) <http://www.nytimes.com/2009/04/19/education/edlife/

leadership-t.html> [as of June 18, 2016].)

Envision EMI is not the only company that organizes and markets educational leadership conferences. According to the same Times article, “[t]he array of similarly named, competing companies underscores the extent to which the concept of student leadership has become big business.”

There’s the National Student Leadership Conference, which offers a “select group of outstanding high school students” a taste of fields like medicine, engineering and business through field trips and simulations, and a chance to earn credit from American University (P.S.: the course comes for an extra fee — $620 for one credit hour or $1,650 for three, on top of a program fee of $1,600 to $3,000). There’s LeadAmerica’s Congressional Student Leadership Conference, which also advertises credit (P.S.: it’s pass/fail, from Loras College in Dubuque, Iowa, and most universities will not accept it). People to People Ambassador Programs, which boasts of ties to Dwight D. Eisenhower, has had to apologize for sending invitations to its leadership programs to deceased children and an Arkansas family’s long-dead one-eyed cat. And Leadership Classroom takes teenagers to the Caribbean each summer for “experiential learning” in sailing and scuba diving. (Id.)

This bill responds to the marketing practices that occur with respect to these leadership conferences. It requires, among other things, that organizations operating these conferences disclose in their marketing materials that the award, invitation, or nomination to participate in the conference constitutes a solicitation for the sale of a product, the specific eligibility criteria required for participation in the solicited educational conference, if any, and that attendance at an educational conference may not affect a student’s chances of being admitted to college.

CHANGES TO EXISTING LAW

Existing law, the Unfair Competition Law, renders an individual liable for any unlawful, unfair or fraudulent business act or practice and any unfair, deceptive, untrue or misleading advertising. (Bus. Prof. Code Sec. 17200.)

Existing law provides that one who willfully deceives another with intent to induce him to alter his position to his injury or risk, is liable for any damage which he thereby suffers. (Civ. Code Sec. 1709.)

This bill requires an educational conference organization that provides materials related to an educational conference directly to a school or any employee for purposes of distribution to a student to provide the materials in a sealed envelope or other packaging addressed to the parent or legal guardian of the student.

This bill requires an educational conference organization to include with such materials, and to provide to specified school employees, all of the following disclosures, in clear and conspicuous language:

• that the materials constitute a solicitation for the sale of a product;
• the legal form of the organization making the solicitation, including the for-profit status of the organization;
• the legal owner, if any, of the organization making the solicitation;
• the specific eligibility criteria required for participation in the solicited educational conference or conferences, if any;
• an itemized list of the costs to participate in the educational conference and the total price of participating in the educational conference, including estimated expenses not included in the price of the educational conference;
• that attendance at an educational conference may not affect a student’s chances of being admitted to college and that a parent or guardian should contact the student’s school counselor for more information;
• whether or not a nomination from a teacher or school administrator is required to participate in the educational conference, or if an individual may be self-nominated or nominated by a parent or guardian;
• the total amount, if any, of funding or other support, including employment or grants for school supplies, the organization has provided to the student’s school or the school’s employees during the last three years before the date of the solicitation; and
• a phone number, email address, or Internet Web site that a parent or guardian may use to contact a government agency within the relevant jurisdiction for purposes of filing a complaint related to the solicitation or the educational conference itself.

This bill defines an “educational conference” to mean a conference, forum, camp, or other similar event, intended to develop the leadership, career, or college readiness of a student or provide some other form of educational benefit, when participation in the event is represented as being limited to students receiving an award, invitation, or nomination to participate in the event.

This bill makes related findings and declarations.

COMMENT

1. Stated need for the bill

The author writes:

Currently, some for-profit event planning companies are delivering their marketing materials for expensive conferences directly through schools to K-12 students without their parents’ consent. By their own description, these solicitations may appear to be an exclusive nomination to attend a prestigious youth leadership conference, when in fact they are simply a sales pitch for a conference that can cost hundreds or even thousands of dollars. These solicitations are addressed directly to the student rather than to the parent, and are delivered by a trusted source; the student’s teacher.

These companies identify potential leads by asking teachers to “nominate” students, although the criteria can be vague, subjective or nonexistent. Once delivered, potentially with great fanfare at school, “nominated” students may mistakenly believe that they have won an award or other competitive honor. However, according to a 2009 New York Times article about the practice, there are no hard and fast criteria for nominators, and teachers simply use their own discretion when identifying potential applicants. In some cases, teachers are also eligible to request “grants” to pay for classroom supplies from the same companies seeking student nominees – although the teachers themselves may not be aware that the nomination process is simply a means to generate a sale.

While these camps may provide a worthwhile enrichment experience for some children who participate, the misleading and manipulative nature of a solicitation that appears to be an honor, and the fact that the pitch is directly and publicly aimed at the student and communicated through a teacher, raises serious questions of student privacy and consumer protection. Young students are particularly vulnerable to manipulative solicitations that appear to be a competitive award or honor because of their perceived value in applying for college, because a respected teacher delivered the materials, or perhaps because the “nomination” was announced publicly before the student’s peers.

Current law is not adequate to protect kids from these solicitations. California’s Student Online Personal Information Act (SOPIPA) only restricts targeted advertising by operators of websites designed and marketed for K-12 purposes. Similarly, the Federal Educational Rights and Privacy Act (FERPA) broadly protects the privacy of student education records, but does not apply to “directory information,” which can include the student's name. AB 2609 protects school-aged children from solicitations from for-profit organizations that sell educational conferences by requiring these companies to address and deliver all marketing materials directly to the parents instead of the student. Additionally, this bill requires the materials to include a disclosure, also given to the school and school employees, that plainly states that it is a solicitation, and specifies the criteria required for participation, if any.

1. Protecting consumers from unfair business practices

The Legislature has long considered consumer protection to be a matter of high importance. State law is replete with statutes aimed at protecting California consumers from unfair, dishonest, or harmful market practices. The Unfair Competition Law (UCL), as an example, renders an individual liable for any unlawful, unfair or fraudulent business act or practice and any unfair, deceptive, untrue or misleading advertising. (Bus. Prof. Code Sec. 17200.) In describing the unfair competition law's broad scope, the Supreme Court explained “it does not proscribe specific practices. Rather . . . it defines unfair competition to include any unlawful, unfair or fraudulent business act or practice. Its coverage is sweeping, embracing anything that can properly be called a business practice and that at the same time is forbidden by law.” (Cel-Tech Communications, Inc. v. Los Angeles Cellular Telephone Co. (1999) 20 Cal.4th 163, 180 (internal quotation marks and citations omitted).)

This bill would compliment California’s existing consumer protection statutes by requiring educational conference organizations to make specified disclosures about the conference products they market to students. As discussed in the Background, marketing practices in this industry appear not to clearly disclose that attendance at such conferences may not affect a student’s chances of being admitted to college, and that an award, invitation, or nomination to participate in a conference actually constitutes solicitation for the sale of a product. Imposing mandatory disclosures and re-directing delivery of solicitation materials to a student’s parent or guardian will likely better educate students, parents, and guardians as to the nature of these offers. Additionally, should an educational conference organization fail to make required disclosures, California’s consumer protections statutes -- like the UCL -- provide strong remedies to parties harmed as a result, either individually or on a class-wide basis.

Support: California Teachers Association; Common Sense Kids Action

Opposition: None Known

HISTORY

Source: Author

Related Pending Legislation: None Known

Prior Legislation: SB 142 (Boatwright, Ch. 772, Stats. 1995) required educational travel organizations that arrange educational travel programs to enter into a contract with an educational institution containing a specified itemized statement of services prior to arranging an educational travel program. SB 142 imposed certain practice requirements on educational travel organizations and made violations of these provisions subject to civil and criminal remedies.

Prior Vote:

Senate Business, Professions and Economic Development Committee (Ayes 9, Noes 0)

Assembly Floor (Ayes 67, Noes 0)

Assembly Appropriations Committee (Ayes 20, Noes 0)

Assembly Education Committee (Ayes 7, Noes 0)

Assembly Privacy and Consumer Protection Committee (Ayes 9, Noes 0)

**************

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Jerry Hill, Chair

2015 - 2016 Regular

Bill No: Hearing Date: June 13, 2016

Subject:

SUMMARY:

Requires for-profit educational conference organizations, as defined, that provide solicitation materials directly to a school for purposes of distribution to a student, to include specified disclosures in those materials and to provide the materials in a sealed envelope addressed to the parent or guardian of the student and to provide the disclosures on separate documents addressed to the school and to any employee thereof who is asked to distribute materials to a student.

Existing law:

1. Pursuant to the federal Family Educational Rights and Privacy Act (FERPA), protects the privacy of student education records and specifies that it applies to all schools that receive funds under an applicable program of the U.S. Department of Education. FERPA requires that schools, with certain exceptions, obtain a parent or guardian’s written consent prior to the disclosure of personally identifiable information from a child’s education records. (20 U.S.C. § 1232g; 34 CFR Part 99)
2. Defines an “educational travel organization” (ETO) as a person, partnership, corporation, or other entity who offers educational travel programs for students residing, in the State of California, and included an educational program as a component, and defines a “student traveler” as a person who is enrolled in K-12 at a time an educational travel program is arranged with an ETO. (Business and Professions Code (BPC) § 17552)
3. Establishes guidelines for an ETO and requires that a written contract for educational travel include, among other things, disclosure of the ETO’s name, address, phone number or other method of 24-hour telecommunications, statement on whether or not the ETO maintains insurance that covers any injury sustained by a student traveler, any additional costs to students, staff qualifications required by the ETO for staff who will accompany students, and specifies that it is a violation to make misleading statements or substantial representations in conducting an educational travel program. (BPC § 17553 - 17556.5)
4. Pursuant to the Student Online Personal Information Protection Act (SOPIPA), prohibits an operator of a website, online service, online application, or mobile application from knowingly engaging in targeted advertising to students or their parents or legal guardians, using covered information to amass a profile about a
   K–12 student, selling a student’s information, or disclosing covered information, unless otherwise specified. (BPC § 22584(b))

This bill:

1. Defines an “educational conference” to mean a conference, forum, camp, or other similar event, intended to develop the leadership, career or college readiness of a student, or provide some other form of educational benefit, when participation in the event is represented as being limited to students receiving an award, invitation or nomination to participate in the event.
   
2. Defines an “educational conference organization” (ECO) to mean a person, partnership, corporation, or other entity that operates in a for-profit manner and that plans and advertises educational conferences to students residing in California.
3. Defines a “student” to mean a person who is enrolled in elementary or secondary school, grade kindergarten through grade 12, at the time an educational conference is arranged with an ECO.
   
4. Requires an ECO that provides materials related to an educational conference directly to a school or employee for purposes of distribution to a student to comply with all of the following:
5. Provide materials in a sealed envelope or other packaging addressed to the parent or legal guardian of the student.
6. Include with the materials all of the following disclosures, in clear and conspicuous language:
   
7. That the materials constitute a solicitation for the sale of a product.
8. The legal form of the organization making the solicitation, including the for-profit status of the organization.
9. The legal owner, if any, of the organization making the solicitation.
10. The specific eligibility criteria required for participation in the solicited educational conference or conferences, if any.
11. An itemized list of the costs to participate in the educational conference and the total price of participating in the educational conference, including estimated expenses not included in the price of the educational conference.
12. That attendance at an educational conference may not affect a student's chances of being admitted to college, and that a parent or guardian should contact the student's school counselor for more information.
13. Whether or not a nomination from a teacher or school administrator is required to participate in the educational conference, or if an individual may be self-nominated or nominated by a parent or guardian.
14. The total amount, if any, of funding or other support, including employment or grants for school supplies, the organization has provided to the student’s school or the school’s employees during the last three years before the date of the solicitation.
15. A phone number, email address, or website that a parent or guardian may use to contact a relevant government agency for purposes of filing a complaint related to the solicitation or the educational conference itself.
16. Requires the ECO to provide the disclosures described above on separate documents addressed to the school and to any employee thereof who is asked to distribute materials to a student.
    
17. Makes legislative findings and declarations pertaining to the importance of protecting students from false or misleading advertising, promoting high-quality educational conference experiences, and encouraging public confidence in youth leadership conferences by establishing appropriate marketing restrictions and disclosure requirements on for-profit educational conference solicitations.

FISCAL EFFECT:

According to the Assembly Committee on Appropriations analysis dated May 18, 2016, this bill will result in minor, non-reimbursable local costs due to the creation of a misdemeanor, offset to some extent by potential fine revenue.

COMMENTS:

1. Purpose. This measure is sponsored by the Author. According to the Author, this bill is intended to better protect students from questionable marketing practices for educational conferences by prohibiting for-profit ECOs from distributing solicitation materials for educational conferences directly to students at school, and by requiring certain disclosures to be included with the solicitation, and for those materials to be provided to the parent or legal guardian of the student and to the school and to any employee who is asked to distribute materials to a student.
   
   Currently, as indicated by Author, some for-profit event planning companies are using schools and teachers to deliver marketing materials for expensive conferences directly to K-12 students, often without their parents’ knowledge or consent.
   
   As stated by the Author, “By their own description, these solicitations may appear to be an exclusive ‘nomination’ to attend a prestigious youth leadership conference, when in fact they are simply a sales pitch for a conference that anyone could attend and can costs hundreds or even thousands of dollars. These solicitations are addressed directly to the student rather than to the parent, and are delivered by a trusted source; the student’s teacher.
   
   “These for-profit companies identify potential leads by asking teachers to “nominate” students, although the criteria can be vague, subjective or nonexistent. Once delivered, potentially with some public fanfare at school, “nominated” students may mistakenly believe that they have won an award or other competitive honor.
   
   “However, according to a 2009 New York Times article about the practice, there are no hard and fast criteria for nominators, and teachers simply use their own discretion when identifying potential applicants. In some cases, these teachers are also eligible to request ‘grants’ to pay for classroom supplies from the same companies seeking student nominees – although the teachers themselves may not be aware that the nomination process is simply a means to generate a sale.”
   
   The Author further notes that while these ECOs may provide a worthwhile enrichment experience for some children who participate, the misleading and manipulative nature of a solicitation that appears to be an honor, and the fact that the pitch is directly and publicly aimed at the student and communicated through a teacher, raises serious questions of student privacy and consumer protection. “Young students are particularly vulnerable to manipulative solicitations that appear to be a competitive award or honor because of their perceived value in applying for college, because a respected teacher delivered the materials or perhaps because the ‘nomination’ was announced publicly before the student’s peers.
   
   As argued by the Author, current law is not adequate to protect kids from directly receiving solicitations from for profit event-planning organizations. California's Student Online Personal Information Act (SOPIPA) only restricts targeted advertising by operators of websites designed and marketed for K-12 purposes. Similarly, the Federal Educational Rights and Privacy Act (FERPA) broadly protects the privacy of student education records, but does not apply to "directory information," which can include the student's name.
2. Background.
   
   The Educational Conference Industry. Educational conferences go by a variety of different names: youth leadership camps, experiential learning programs, and prestige conferences, but what they all have in common is that they provide school-aged children who are seeking extra-curricular activities for personal enrichment, civic engagement or even an advantage with future college admissions. However, these programs vary widely from one another in their marketing, admissions criteria, selection processes, and costs to participate.
   
   Perhaps the most well-known example of an educational conference provider is the American Legion’s Boys and Girls State, which was founded in 1935 to allow students to study the operation of local, county and state government by participating in activities such as legislative sessions or court proceedings during their annual conferences. Legion Posts select high school juniors based on recommended guidelines that include interviews to evaluate merit and ability in order to attend their program. In most cases, individual expenses are paid by a sponsoring post, a local business or another community-based organization.
   
   Rotary International also offers several programs for youth such as the Rotary Youth Leadership Awards, which is a leadership development program that hosts events that include presentations, activities, and workshops that cover a variety of topics. Participants are nominated by their local Rotary clubs, which often cover all expenses. Both the American Legion and Rotary programs are organized as non-profits.
   
   There are also programs offered by for-profit companies, such as the Junior National Young Leaders Conference, the National Youth Leadership Forum, or the Global Young Leaders Conference. These programs solicit their participants through a "nomination" process that relies on teachers to identify potential participants from among their own students, and can cost hundreds or even thousands of dollars to participate.
   
   Consumer Protection Concerns about ECOs and their Nomination Process. According to a New York Times article in April of 2009, “Congratulations! You are Nominated. It’s an Honor (It’s a Sales Pitch)”, students are receiving conference solicitations that “looked and sounded more like an Academy Award than a sales pitch. In fancy script, on weighty card stock adorned by a giant gold seal . . .[it] promised a ‘lifetime advantage’ and ‘valuable addition’ to her resume. It used words like ‘elite,’ distinguished,’ ‘select.’”
   
   Students who receive these offers may be led to believe that attendance at these conferences is a highly selective honor because of statements in the solicitation materials that call nominees “the nation’s most highly acclaimed students” and “most promising young leaders of tomorrow.” However, according to the article, “there are no hard and fast criteria for nominators. . . .The nomination form asks for nothing beyond the student’s name, address, school year and sex.”
   
   The New York Times cites Jeff Sherrill, an associate director with the National Association of Secondary School Principals, who says that in his view, a leadership conference is no more or less likely to enhance college applications than, say, soccer camp. “It doesn’t fall into the same category as being selected by your county where there was truly some type of assessment and selection process. Honors typically don’t come with a price tag,” he says.
   
   The article goes on to say that “[l]eadership companies marketing to teenagers spend handsomely on mailing lists (the College Board is one source), but the biggest pipeline to customers is teachers and program alumni. Mailings usually name the person making the nomination and include a list of past participants from the student’s school.”
   
   Eligibility criteria may also be vague, or even non-existent. For example, the website of one ECO (Envision EMI) suggests that educators nominate students who “show special academic promise, aspirations, and leadership potential, can meet the challenges of the program’s rigorous curriculum, and will be mature and confident contributors to group and program activities.” However, no quantifiable criteria, such as grade point average, are provided, and the nomination process (requiring the student's name and address) can be completed online. Furthermore, a nominator need not even be the student's teacher: Envision EMI allows any "teacher, educator or mentor who is interested in giving students an experiential learning opportunity outside the classroom is eligible to nominate." Once a nomination is made, marketing materials designed to look like award letters will be delivered to the student's school, addressed directly to the student, or to the address provided in the nomination.
   
   The cost of for-profit conferences is also raised as an issue. The Times article describes one program (Envision EMI's week-long Congressional Youth Leadership Council (CYLC)) that can costs upwards of $2,200, with airfare and meals not included, which students are encouraged to pay for through community fundraising: “Needy students are typically sent a brochure with fund-raising ideas and success stories of other students who have tapped friends, family and community to help pay their way....” In 2006, 1.7% of the revenues for Envision's CYLC program went to grants and scholarships.
   
   FERPA and Access to Directory Information. Although there are several federal and state laws in place designed to protect student privacy, certain exceptions exist that allow a student’s information to be released to outside organizations. For instance, FERPA permits schools to disclose “directory information,” defined as information that is generally not considered harmful or an invasion of privacy if released, without written consent to a third party, which can include companies that manufacture class rings or publish yearbooks.
   
   Because ECOs are only accessing directory information when asking teachers to nominate students, a FERPA violation does not arise.
3. Arguments in Support. The California Teachers Association (CTA) is in support of this measure and indicates that currently, some for-profit event planning companies are delivering their marketing materials for expensive conferences directly through public schools. By their own description, these solicitations may appear to be an exclusive nomination to attend a prestigious youth leadership conference, when in fact they are simply a sales pitch for a conference that can cost thousands of dollars. These solicitations are delivered by a trusted source; the student’s teacher.
   The CTA argues that teachers must know if the packet they are asked to pass out to their class constitutes an advertisement or an award. This measure will require disclosure to the school and to any employee thereof asked to distribute materials to the student. It will clear up any confusion for the teacher about whether the student is receiving a competitive honor or whether it is in fact a solicitation for a commercial purpose.
   
   The Common Sense Kids Action (CSKA) is also in support of this measure and believe that it will protect school-aged children from directly receiving potentially misleading solicitations from for-profit companies to attend so-called “prestige conferences.” As argued by CSKA, these solicitations are sometimes designed to appear to be an exclusive nomination to attend a prestigious youth leadership conference when in fact they are simply a sales pitch for a conference that can cost hundreds or even thousands of dollars. Some of these camps or conferences may provide a worthwhile enrichment experience for some children who participate, but regardless, the misleading and manipulative nature of a solicitation that makes it appear to be an honor raises serious questions about student privacy and consumer protection.

NOTE:

Double-referral to Senate Committee on Judiciary, second.

SUPPORT AND OPPOSITION:

Support:

California Teachers Association

Common Sense Kids Action

Opposition:

None on file as of June 7, 2016.

-- END --

Date of Hearing: May 18, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2609

Author:(Chau) – As Amended Ver:May 10, 2016

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill requires for-profit educational conference organizations (ECOs) that provide solicitation materials directly to a school for purposes of distribution to a student to include specified disclosures with the materials, to provide those disclosures to the school and specified school employees, and to provide the materials in a sealed envelope addressed to the parent or guardian of the student.

FISCAL EFFECT:

Minor, non-reimbursable local costs due to the creation of a misdemeanor, offset to some extent by potential fine revenue.

COMMENTS:

1. Purpose. This bill is intended to better protect students from questionable marketing practices for educational conferences by prohibiting for-profit ECOs from distributing solicitation materials for educational conferences directly to students at school, and by requiring certain disclosures to be included with the solicitation.

According to the author, "While some for-profit youth leadership camps may provide a worthwhile enrichment experience for children who participate, the misleading and manipulative nature of a solicitation that appears to be an honor, and the fact that the pitch is directly and publicly aimed at the student and communicated through a teacher, raises serious questions of student privacy and consumer protection. Young students are particularly vulnerable to manipulative solicitations that appear to be a competitive award or honor because of their perceived value in applying for college, because a respected teacher delivered the materials, or perhaps because the ‘nomination’ was announced publicly before the student's peers."

1. Background. Educational conferences go by a variety of different names: youth leadership camps, experiential learning programs, and prestige conferences, but they all seek school-aged children who are seeking extra-curricular activities for personal enrichment, civic engagement or even an advantage with future college admissions. However, these programs vary widely from one another in their marketing, admissions criteria, selection processes, and costs to participate.

Two well-known examples of education conference providers are the American Legion and Rotary programs which are organized as non-profits. These programs select their participants based on recommended guidelines and in most cases, individual expenses are paid by sponsoring posts or local clubs or businesses. However, there are also programs offered by for-profit companies, such as the Junior National Young Leaders Conference, the National Youth Leadership Forum, or the Global Young Leaders Conference. These programs solicit their participants through a "nomination" process that relies on teachers to identify potential participants from among their own students, and can cost hundreds or even thousands of dollars to participate.

1. Consumer protection concerns about the "nomination" process. According to a 2009 New York Times article, (“Congratulations! You are Nominated. It’s an Honor [It’s a Sales Pitch]” New York Times, April 13, 2009) students are receiving conference solicitations that “looked and sounded more like an Academy Award than a sales pitch. In fancy script, on weighty card stock adorned by a giant gold seal . . .[it] promised a ‘lifetime advantage’ and ‘valuable addition’ to her resume. It used words like ‘elite,’ distinguished,’ ‘select.’”

Students who receive these offers may be led to believe that attendance at these conferences is a highly selective honor because of statements in the solicitation materials that call nominees “the nation’s most highly acclaimed students” and “most promising young leaders of tomorrow.” However, according to the article, “there are no hard and fast criteria for nominators. . . .The nomination form asks for nothing beyond the student’s name, address, school year and sex.”

Eligibility criteria may also be vague, or even non-existent. For example, the website of one ECO (Envision EMI) suggests that educators nominate students who “show special academic promise, aspirations, and leadership potential, can meet the challenges of the program’s rigorous curriculum, and will be mature and confident contributors to group and program activities.” However, no quantifiable criteria, such as grade point average, are provided, and the nomination process (requiring the student's name and address) can be completed online. Once a nomination is made, marketing materials designed to look like award letters will be delivered to the student's school, addressed directly to the student, or to the address provided in the nomination.

In order to better protect students from potentially misleading advertising, this bill would require ECO's to address sealed solicitations to the parents or guardians of the student instead of the student and include key disclosures with those materials to make clear that it is a solicitation and not an award. By allowing parents to see the materials first, with the added context provided by the new disclosures, this bill attempts to put parents in a better position to understand and explain the nature of the solicitation to the student, thereby allowing the family to make a more informed decision as to whether or not to participate.

1. Prior Legislation. SB 142 (Boatwright), Chapter 772, Statutes of 1995, established consumer protection guidelines for educational travel organizations (ETOs).

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 20, 2016

ASSEMBLY COMMITTEE ON EDUCATION

Patrick O'Donnell, Chair

ABPCA Bill Id:AB 2609 (

Author:Chau) – As Amended Ver:March 28, 2016

[This bill was double referred to the Assembly Committee on Privacy and Consumer Protection and was heard by that committee as it relates to issues under its jurisdiction.]

SUBJECT: Advertising: educational conferences

SUMMARY: Requires for-profit educational conference organizations that provide solicitation materials directly to a school for purposes of distribution to a student to include specified disclosures in those materials and to provide the materials in a sealed envelope addressed to the parent or guardian of the student. Specifically, this bill:

1. Requires an educational conference organization (ECO) that provides materials related to an educational conference directly to a school or employee for purposes of distribution to a student to:
2. Provide materials in a sealed envelope or other packaging addressed to the parent or legal guardian of the student.
3. Include in the materials the following disclosures, in clear and conspicuous language:
   
4. That the materials constitute a solicitation for the sale of a product.
5. The legal form of the organization making the solicitation, including the for-profit status of the organization.
6. The legal owner, if any, of the organization making the solicitation.
7. The specific eligibility criteria required for participation in the solicited educational conference or conferences, if any.
8. An itemized list of the costs to participate in the educational conference and the total price of participating in the educational conference, including estimated expenses not included in the price of the educational conference.
9. That attendance at an educational conference may not affect a student's chances of being admitted to college, and that a parent or guardian should contact the student's school counselor for more information.
10. Whether or not a nomination from a teacher or school administrator is required to participate in the educational conference, or if an individual may be self-nominated or nominated by a parent or guardian.
11. The total amount, if any, of funding or other support, including employment or grants for school supplies, the organization has provided to the student’s school or the school’s employees during the last three years before the date of the solicitation.
12. A phone number, email address, or website that a parent or guardian may use to contact a relevant government agency for purposes of filing a complaint related to the solicitation or the educational conference itself.
13. Defines an educational conference to mean "a conference, forum, camp, or other similar event, intended to develop the leadership, career or college readiness of a student, or provide some other form of educational benefit, when participation in the event is represented as being limited to students receiving an award, invitation or nomination to participate in the event."
14. Defines an educational conference organization (ECO) to mean "a person, partnership, corporation, or other entity that operates in a for-profit manner and that plans and advertises educational conferences to students residing in California."
15. Defines a student to mean "a person who is enrolled in elementary or secondary school, grade kindergarten through grade 12, at the time an educational conference is arranged with an ECO."
16. Makes legislative findings and declarations pertaining to the importance of protecting students from false or misleading advertising, promoting high-quality educational conference experiences, and encouraging public confidence in youth leadership conferences by establishing appropriate marketing restrictions and disclosure requirements on for-profit educational conference solicitations.

1. Declares that no reimbursement is required by this bill because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, or changes the definition of a crime.

EXISTING LAW:

1. Pursuant to the federal Family Educational Rights and Privacy Act (FERPA), protects the privacy of student education records and applies to all schools that receive funds under an applicable program of the U.S. Department of Education. FERPA requires that schools, with certain exceptions, obtain a parent or guardian’s written consent prior to the disclosure of personally identifiable information from a child’s education records. (20 U.S.C. § 1232g; 34 CFR Part 99)
2. Pursuant to the Student Online Personal Information Protection Act (SOPIPA), prohibits an operator of a website, online service, online application, or mobile application from knowingly engaging in targeted advertising to students or their parents or legal guardians, using covered information to amass a profile about a K–12 student, selling a student’s information, or disclosing covered information. (Business and Professions Code (BPC) Section 22584(a))
3. Establishes guidelines for educational travel organizations (ETO) and requires that a written contract for educational travel include, among other things, disclosure of the ETO’s name, address, phone number or other method of 24-hour telecommunications, statement on whether or not the ETO maintains insurance that covers any injury sustained by a student traveler, any additional costs to students, staff qualifications required by the ETO for staff who will accompany students, and specifies that it is a violation to make misleading statements or substantial representations in conducting an educational travel program. (BPC 17552 - 17556.5)

FISCAL EFFECT: Unknown

COMMENTS:

1. Purpose of this bill. This bill is intended to better protect students from questionable marketing practices for educational conferences by prohibiting for-profit ECOs from distributing solicitation materials for educational conferences directly to students at school, and by requiring certain disclosures to be included with the solicitation. This bill is author-sponsored.
2. Author’s statement. According to the author, "While some for-profit youth leadership camps may provide a worthwhile enrichment experience for children who participate, the misleading and manipulative nature of a solicitation that appears to be an honor, and the fact that the pitch is directly and publicly aimed at the student and communicated through a teacher, raises serious questions of student privacy and consumer protection. Young students are particularly vulnerable to manipulative solicitations that appear to be a competitive award or honor because of their perceived value in applying for college, because a respected teacher delivered the materials, or perhaps because the ‘nomination’ was announced publicly before the student's peers."

This bill offers strong protection against organizations that use deceptive marketing techniques to lure students into attending their programs while allowing the many non-profit service organizations who have made substantial contributions in the area of youth leadership training to continue their efforts."

1. The educational conference industry. Educational conferences go by a variety of different names: youth leadership camps, experiential learning programs, and prestige conferences, but what they all have in common is that they provide school-aged children who are seeking extra-curricular activities for personal enrichment, civic engagement or even an advantage with future college admissions. However, these programs vary widely from one another in their marketing, admissions criteria, selection processes, and costs to participate.

Perhaps the most well-known example of an educational conference provider is the American Legion’s Boys and Girls State, which was founded in 1935 to allow students to study the operation of local, county and state government by participating in activities such as legislative sessions or court proceedings during their annual conferences. Legion Posts select high school juniors based on recommended guidelines that include interviews to evaluate merit and ability in order to attend their program. In most cases, individual expenses are paid by a sponsoring post, a local business or another community-based organization.

Rotary International also offers several programs for youth such as the Rotary Youth Leadership Awards, which is a leadership development program that hosts events that include presentations, activities, and workshops that cover a variety of topics. Participants are nominated by their local Rotary clubs, which often cover all expenses. Both the American Legion and Rotary programs are organized as non-profits.

There are also programs offered by for-profit companies, such as the Junior National Young Leaders Conference, the National Youth Leadership Forum, or the Global Young Leaders Conference. These programs solicit their participants through a "nomination" process that relies on teachers to identify potential participants from among their own students, and can cost hundreds or even thousands of dollars to participate.

1. Consumer protection concerns about the "nomination" process. According to a 2009 New York Times article, (“Congratulations! You are Nominated. It’s an Honor [It’s a Sales Pitch]” New York Times, April 13, 2009) students are receiving conference solicitations that “looked and sounded more like an Academy Award than a sales pitch. In fancy script, on weighty card stock adorned by a giant gold seal . . .[it] promised a ‘lifetime advantage’ and ‘valuable addition’ to her resume. It used words like ‘elite,’ distinguished,’ ‘select.’”

Students who receive these offers may be led to believe that attendance at these conferences is a highly selective honor because of statements in the solicitation materials that call nominees “the nation’s most highly acclaimed students” and “most promising young leaders of tomorrow.” However, according to the article, “there are no hard and fast criteria for nominators. . . .The nomination form asks for nothing beyond the student’s name, address, school year and sex.”

The New York Times cites Jeff Sherrill, an associate director with the National Association of Secondary School Principals, who says that in his view, a leadership conference is no more or less likely to enhance college applications than, say, soccer camp. “It doesn’t fall into the same category as being selected by your county where there was truly some type of assessment and selection process. Honors typically don’t come with a price tag,” he says.

The article goes on to say that “[l]eadership companies marketing to teenagers spend handsomely on mailing lists (the College Board is one source), but the biggest pipeline to customers is teachers and program alumni. Mailings usually name the person making the nomination and include a list of past participants from the student’s school.”

Eligibility criteria may also be vague, or even non-existent. For example, the website of one ECO (Envision EMI) suggests that educators nominate students who “show special academic promise, aspirations, and leadership potential, can meet the challenges of the program’s rigorous curriculum, and will be mature and confident contributors to group and program activities.” However, no quantifiable criteria, such as grade point average, are provided, and the nomination process (requiring the student's name and address) can be completed online. Furthermore, a nominator need not even be the student's teacher: Envision EMI allows any "teacher, educator or mentor who is interested in giving students an experiential learning opportunity outside the classroom is eligible to nominate." Once a nomination is made, marketing materials designed to look like award letters will be delivered to the student's school, addressed directly to the student, or to the address provided in the nomination.

The cost of for-profit conferences is also raised as an issue. The Times article describes one program (Envision EMI's week-long Congressional Youth Leadership Council (CYLC)) that can costs upwards of $2,200, with airfare and meals not included, which students are encouraged to pay for through community fundraising: “Needy students are typically sent a brochure with fund-raising ideas and success stories of other students who have tapped friends, family and community to help pay their way....” In 2006, 1.7% of the revenues for Envision's CYLC program went to grants and scholarships.

In order to better protect students from potentially misleading advertising, this bill would require ECO's to address sealed solicitations to the parents or guardians of the student instead of the student and include key disclosures with those materials to make clear that it is a solicitation and not an award. By allowing parents to see the materials first, with the added context provided by the new disclosures, this bill attempts to put parents in a better position to understand and explain the nature of the solicitation to the student, thereby allowing the family to make a more informed decision as to whether or not to participate.

1. FERPA and directory information. Although there are several federal and state laws in place designed to protect student privacy, certain exceptions exist that allow a student’s information to be released to outside organizations. For instance, FERPA permits schools to disclose “directory information,” defined as information that is generally not considered harmful or an invasion of privacy if released, without written consent to a third party, which can include companies that manufacture class rings or publish yearbooks.

Because ECOs are only accessing directory information when asking teachers to nominate students, a FERPA violation does not arise.

1. Prior Legislation. SB 142 (Boatwright), Chapter 772, Statutes of 1995, established consumer protection guidelines for ETOs.

REGISTERED SUPPORT / OPPOSITION:

Support

None received

Opposition

None received

Analysis Prepared by: Rick Pratt / ED. / (916) 319-2087

Date of Hearing: April 5, 2016

ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION

Ed Chau, Chair

ABPCA Bill Id:AB 2609 (

Author:Chau) – As Amended Ver:March 28, 2016

SUBJECT: Advertising: educational conferences

SUMMARY: Requires for-profit educational conference organizations that provide solicitation materials directly to a school for purposes of distribution to a student to include specified disclosures in those materials and to provide the materials in a sealed envelope addressed to the parent or guardian of the student. Specifically, this bill:

1. Requires an educational conference organization (ECO) that provides materials related to an educational conference directly to a school or employee for purposes of distribution to a student to:
2. Provide materials in a sealed envelope or other packaging addressed to the parent or legal guardian of the student.
3. Include in the materials the following disclosures, in clear and conspicuous language:
   
4. That the materials constitute a solicitation for the sale of a product.
5. The legal form of the organization making the solicitation, including the for-profit status of the organization.
6. The legal owner, if any, of the organization making the solicitation.
7. The specific eligibility criteria required for participation in the solicited educational conference or conferences, if any.
8. An itemized list of the costs to participate in the educational conference and the total price of participating in the educational conference, including estimated expenses not included in the price of the educational conference.
9. That attendance at an educational conference may not affect a student's chances of being admitted to college, and that a parent or guardian should contact the student's school counselor for more information.
10. Whether or not a nomination from a teacher or school administrator is required to participate in the educational conference, or if an individual may be self-nominated or nominated by a parent or guardian.
11. The total amount, if any, of funding or other support, including employment or grants for school supplies, the organization has provided to the student’s school or the school’s employees during the last three years before the date of the solicitation.
12. A phone number, email address, or website that a parent or guardian may use to contact a relevant government agency for purposes of filing a complaint related to the solicitation or the educational conference itself.
13. Defines an educational conference to mean "a conference, forum, camp, or other similar event, intended to develop the leadership, career or college readiness of a student, or provide some other form of educational benefit, when participation in the event is represented as being limited to students receiving an award, invitation or nomination to participate in the event."
14. Defines an educational conference organization (ECO) to mean "a person, partnership, corporation, or other entity that operates in a for-profit manner and that plans and advertises educational conferences to students residing in California."
15. Defines a student to mean "a person who is enrolled in elementary or secondary school, grade kindergarten through grade 12, at the time an educational conference is arranged with an ECO."
16. Makes legislative findings and declarations pertaining to the importance of protecting students from false or misleading advertising, promoting high-quality educational conference experiences, and encouraging public confidence in youth leadership conferences by establishing appropriate marketing restrictions and disclosure requirements on for-profit educational conference solicitations.

1. Declares that no reimbursement is required by this bill because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, or changes the definition of a crime.

EXISTING LAW:

1. Pursuant to the federal Family Educational Rights and Privacy Act (FERPA), protects the privacy of student education records and applies to all schools that receive funds under an applicable program of the U.S. Department of Education. FERPA requires that schools, with certain exceptions, obtain a parent or guardian’s written consent prior to the disclosure of personally identifiable information from a child’s education records. (20 U.S.C. § 1232g; 34 CFR Part 99)
2. Pursuant to the Student Online Personal Information Protection Act (SOPIPA), prohibits an operator of a website, online service, online application, or mobile application from knowingly engaging in targeted advertising to students or their parents or legal guardians, using covered information to amass a profile about a K–12 student, selling a student’s information, or disclosing covered information. (Business and Professions Code (BPC) Section 22584(a))
3. Establishes guidelines for educational travel organizations (ETO) and requires that a written contract for educational travel include, among other things, disclosure of the ETO’s name, address, phone number or other method of 24-hour telecommunications, statement on whether or not the ETO maintains insurance that covers any injury sustained by a student traveler, any additional costs to students, staff qualifications required by the ETO for staff who will accompany students, and specifies that it is a violation to make misleading statements or substantial representations in conducting an educational travel program. (BPC 17552 - 17556.5)

FISCAL EFFECT: Unknown

COMMENTS:

1. Purpose of this bill. This bill is intended to better protect students from questionable marketing practices for educational conferences by prohibiting for-profit ECOs from distributing solicitation materials for educational conferences directly to students at school, and by requiring certain disclosures to be included with the solicitation. This bill is author-sponsored.
2. Author’s statement. According to the author, "While some for-profit youth leadership camps may provide a worthwhile enrichment experience for children who participate, the misleading and manipulative nature of a solicitation that appears to be an honor, and the fact that the pitch is directly and publicly aimed at the student and communicated through a teacher, raises serious questions of student privacy and consumer protection. Young students are particularly vulnerable to manipulative solicitations that appear to be a competitive award or honor because of their perceived value in applying for college, because a respected teacher delivered the materials, or perhaps because the ‘nomination’ was announced publicly before the student's peers."

"This bill offers strong protection against organizations that use deceptive marketing techniques to lure students into attending their programs while allowing the many non-profit service organizations who have made substantial contributions in the area of youth leadership training to continue their efforts."

1. The educational conference industry. Educational conferences go by a variety of different names: youth leadership camps, experiential learning programs, and prestige conferences, but what they all have in common is that they provide school-aged children who are seeking extra-curricular activities for personal enrichment, civic engagement or even an advantage with future college admissions. However, these programs vary widely from one another in their marketing, admissions criteria, selection processes, and costs to participate.

Perhaps the most well-known example of an educational conference provider is the American Legion’s Boys and Girls State, which was founded in 1935 to allow students to study the operation of local, county and state government by participating in activities such as legislative sessions or court proceedings during their annual conferences. Legion Posts select high school juniors based on recommended guidelines that include interviews to evaluate merit and ability in order to attend their program. In most cases, individual expenses are paid by a sponsoring post, a local business or another community-based organization.

Rotary International also offers several programs for youth such as the Rotary Youth Leadership Awards, which is a leadership development program that hosts events that include presentations, activities, and workshops that cover a variety of topics. Participants are nominated by their local Rotary clubs, which often cover all expenses. Both the American Legion and Rotary programs are organized as non-profits.

Conversely, there are also programs offered by a for-profit company, such as the Junior National Young Leaders Conference, the National Youth Leadership Forum, or the Global Young Leaders Conference. These programs solicit their participants through a "nomination" process that relies on teachers to identify potential participants from among their own students, and can cost hundreds or even thousands of dollars to participate.

1. Consumer protection concerns about the "nomination" process. According to a 2009 New York Times article, (“Congratulations! You are Nominated. It’s an Honor [It’s a Sales Pitch]” New York Times, April 13, 2009) students are receiving conference solicitations that “looked and sounded more like an Academy Award than a sales pitch. In fancy script, on weighty card stock adorned by a giant gold seal . . .[it] promised a ‘lifetime advantage’ and ‘valuable addition’ to her resume. It used words like ‘elite,’ distinguished,’ ‘select.’”

Students who receive these offers may be led to believe that attendance at these conferences is a highly selective honor because of statements in the solicitation materials that call nominees “the nation’s most highly acclaimed students” and “most promising young leaders of tomorrow.” However, according to the article, “there are no hard and fast criteria for nominators. . . .The nomination form asks for nothing beyond the student’s name, address, school year and sex.”

The New York Times cites Jeff Sherrill, an associate director with the National Association of Secondary School Principals, who says that in his view, a leadership conference is no more or less likely to enhance college applications than, say, soccer camp. “It doesn’t fall into the same category as being selected by your county where there was truly some type of assessment and selection process. Honors typically don’t come with a price tag,” he says.

The article goes on to say that “[l]eadership companies marketing to teenagers spend handsomely on mailing lists (the College Board is one source), but the biggest pipeline to customers is teachers and program alumni. Mailings usually name the person making the nomination and include a list of past participants from the student’s school.”

Eligibility criteria may also be vague, or even non-existent. For example, the website of one ECO (Envision EMI) suggests that educators nominate students who “show special academic promise, aspirations, and leadership potential, can meet the challenges of the program’s rigorous curriculum, and will be mature and confident contributors to group and program activities.” However, no quantifiable criteria, such as grade point average, are provided, and the nomination process (requiring the student's name and address) can be completed online. Furthermore, a nominator need not even be the student's teacher: Envision EMI allows any "teacher, educator or mentor who is interested in giving students an experiential learning opportunity outside the classroom is eligible to nominate." Once a nomination is made, marketing materials designed to look like award letters will be delivered to the student's school, addressed directly to the student, or to the address provided in the nomination.

The cost of for-profit conferences is also raised as an issue. The Times article describes one program (Envision EMI's week-long Congressional Youth Leadership Council (CYLC)) that can costs upwards of $2,200, with airfare and meals not included, which students are encouraged to pay for through community fundraising: “Needy students are typically sent a brochure with fund-raising ideas and success stories of other students who have tapped friends, family and community to help pay their way....” In 2006, 1.7% of the revenues for Envision's CYLC program went to grants and scholarships.

In order to better protect students from potentially misleading advertising, this bill would require ECO's to address sealed solicitations to the parents or guardians of the student instead of the student and include key disclosures with those materials to make clear that it is a solicitation and not an award. By allowing parents to see the materials first, with the added context provided by the new disclosures, this bill attempts to put parents in a better position to understand and explain the nature of the solicitation to the student, thereby allowing the family to make a more informed decision as to whether or not to participate.

1. FERPA and directory information. Although there are several federal and state laws in place designed to protect student privacy, certain exceptions exist that allow a student’s information to be released to outside organizations. For instance, FERPA permits schools to disclose “directory information,” defined as information that is generally not considered harmful or an invasion of privacy if released, without written consent to a third party, which can include companies that manufacture class rings or publish yearbooks.

Because ECOs are only accessing directory information when asking teachers to nominate students, a FERPA violation does not arise.

1. Prior Legislation. SB 142 (Boatwright), Chapter 772, Statutes of 1995, established consumer protection guidelines for ETOs.
2. Double-referral. This bill was double-referred to the Assembly Education Committee, where it will be heard if passed by this Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Jessica Langtry & Hank Dempsey / P. & C.P. / (916) 319-2200