I think it was more than just student backlash. After all, the story begins with a description of an education conference boycott in response to an announcement that it would be sponsored by Proctorio, a test surveillance company. Still, I think this is now the right trend, and the story continues with a list of institutions dropping the product. As Duke University's academic integrity guide states, "Proctoring services essentially bring strangers into students' homes or dorm rooms—in places students may not be comfortable exposing. These violations of privacy perpetuate inequity through the use of surveillance technologies."
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