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School Spies on Students at Home with Webcam
Read Article From NBC (Opens new page).

Philadelphia area school uses the webcams built into the notebook computers students are loaned to document inappropriate behavior, while at home! Initial complaints were met with excuses such as "Glitch/Bug" in the system.

After a student got reprimanded for "Improper behavior", complaints started pouring in. Lawsuit was filed and the school decided to discontinue practice.