Legal Risks in New Covenant Christian School’s Privacy Policy: A Case Study in Compliance and Liability | Erayaha

When Privacy Policies Create Six-Figure Risks: Our Analysis of New Covenant Christian School’s Legal Framework

Imagine a single ambiguous clause exposing your school to $100,000+ in regulatory fines or years of litigation. Our review of New Covenant Christian School’s (NCCS) Privacy Policy reveals several critical gaps that could result in significant financial and reputational harm—especially given the sensitive nature of student and child data. Here’s what our legal analysis uncovered and how targeted improvements can proactively mitigate risk.

1. Vague Data Sharing with Affiliates and Business Partners NCCS’s policy allows sharing personal data with affiliates and business partners but lacks specificity about the types of data, purposes, and user controls. Under GDPR and CCPA, such ambiguity can trigger regulatory scrutiny and fines up to €20 million or 4% of annual revenue. Clearer language is essential to limit liability and ensure compliance.

Legal Analysis

high Risk

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We may share your personal information in the following situations: With Service Providers: We may share Your personal informationonly with Service Providers to monitor and analyze the usespecified categories of our Service Providers, to contact You. ForAffiliates, and Business transfers: We may share or transfer Your personal information in connection withPartners, or during negotiations of,and solely for the explicit purposes described in this Policy. Prior to any mergersharing, sale of Company assetswe will provide notice and, financingwhere required by law, or acquisition of all or a portion of our business to another companyobtain your consent. With Affiliates: We maydo not share Yourpersonal information with Our affiliates, for third-party direct marketing without your explicit opt-in which case we will require those affiliates to honor this Privacy Policyconsent. Affiliates include Our parent company and any other subsidiaries, joint venture partners or other companies that We control or thatAll recipients are under common control with Us. With Business partners: We may share Your information with Our business partnerscontractually required to offer You certain products, services or promotionsimplement appropriate safeguards and use your data only as instructed by us.

Legal Explanation

The original clause is overly broad and lacks specificity about the types of data shared, purposes, and user controls, which is required under GDPR and CCPA. The revision limits sharing to defined purposes, introduces notice and consent, and mandates contractual safeguards, reducing regulatory and litigation risk.

2. Insufficient Parental Consent Mechanisms for Children’s Data While the policy references parental consent for users under 13, it does not specify the verification process or address COPPA’s strict requirements. Failure to implement robust, documented consent procedures can result in FTC enforcement actions, with penalties reaching $43,792 per violation.

Legal Analysis

critical Risk

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We use reasonable efforts to ensure thatrequire verifiable parental consent before we collect anycollecting, using, or disclosing personal information from a childchildren under 13, the child’s parent receivesin compliance with COPPA. Our process includes direct notice to parents, collection of signed consent forms or equivalent verification, and consents to our personal information practices. We may ask a User to verify its datemaintenance of birth before collecting any personal information from themconsent records. If the UserChildren’s access is under the age of 13, the Service may be either blocked or redirected to a parentaluntil consent processis confirmed.

Legal Explanation

The original clause does not specify a verifiable parental consent mechanism or recordkeeping, both required by COPPA. The revision ensures compliance, reduces FTC enforcement risk, and provides clear operational guidance.

3. Unclear International Data Transfer Safeguards The Privacy Policy permits data transfers outside Pennsylvania and the U.S. but does not describe safeguards for cross-border transfers, as required by GDPR and other frameworks. This omission exposes NCCS to regulatory action and potential suspension of international data flows, risking operational disruption and fines.

Legal Analysis

high Risk

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Your information, including Personal Data, is processed at the Company’s operating offices and in any other places where the parties involved in the processing are located. It means that this information may be transferred to — and maintained on — computers locatedprocessed in jurisdictions outside of Youryour state or country. Where such transfers occur, provincewe implement appropriate safeguards as required by applicable law, countrysuch as Standard Contractual Clauses or other governmental jurisdiction where theequivalent mechanisms under GDPR, to ensure your data protection laws may differ than those from Youris protected to the same standard as in your jurisdiction. Your consent to this Privacy Policy followed by Your submission of such information represents Your agreement to that transfer.

Legal Explanation

The original clause lacks any mention of legal safeguards for international transfers, which are mandatory under GDPR and similar laws. The revision introduces required protections, reducing the risk of regulatory penalties and data transfer bans.

4. Overbroad Retention of Personal Data NCCS states it will retain personal data “only for as long as is necessary,” but does not define retention periods or deletion protocols. This lack of specificity can lead to non-compliance with data minimization and retention requirements, increasing the risk of data breaches and associated costs (average breach cost in education: $3.86 million).

Legal Analysis

high Risk

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The Company willWe retain Youryour Personal Data only for as long as is necessary forspecified periods aligned with the purposes set outoutlined in this Privacy Policy. We will retain and use Your Personal Data to the extent necessary to comply with ourapplicable legal obligations (for examplerequirements. Upon expiration of these periods or fulfillment of the purposes, if we are required to retain your data to comply with applicable laws), resolve disputes,will be securely deleted or anonymized. Detailed retention schedules and enforce our legal agreements and policiesdeletion protocols are available upon request.

Legal Explanation

The original clause is vague and does not define retention periods or deletion protocols, which are required under GDPR and CCPA. The revision introduces specificity, supporting compliance and reducing breach risk.

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Conclusion: Proactive Redlines for Legal Resilience Our examination shows that even well-intentioned privacy policies can contain costly gaps. Addressing these issues now can help NCCS avoid regulatory penalties, litigation, and reputational damage.

Are your data sharing and retention policies specific enough to withstand regulatory scrutiny?
What would a data breach or compliance investigation cost your organization?
How often do you review and update your privacy practices for new legal risks?

**This analysis is for educational purposes only and does not constitute legal advice. For actual legal guidance, consult with a licensed attorney. This assessment is based on publicly available information and professional legal analysis. See erayaha.ai’s terms of service for liability limitations.**