NC S601

Prohibits operators of online services used in public schools from engaging in targeted advertising based on student data, discriminating against students using their data, selling student data, or knowingly disclosing student data without authorization.

Requires operators to implement reasonable security procedures to protect student data and delete student information upon request by public schools or school administrative units.

Mandates that contracts between local school boards and online service operators include provisions for data ownership by the school, student control of student-generated content, security measures, breach notification procedures, and compliance with federal Family Educational Rights and Privacy Act requirements.

Allows limited disclosure of student data for legal compliance, court orders, public school purposes, third-party service providers with strict contractual restrictions, legitimate research, and Department of Public Instruction requests.

Permits operators to use de-identified student data for improving educational products, demonstrating effectiveness, and developing new educational services; applies to all online services designed and marketed for public school purposes, effective July 1, 2015.