Texas takes a radically different approach to private school regulation. Private schools in Texas are almost completely unregulated — no state registration, no accreditation requirement, no curriculum approval. The Texas Education Agency has no regulatory authority over private schools, and the Texas Supreme Court has repeatedly affirmed this hands-off philosophy.
But this freedom doesn't mean zero legal exposure. The Texas Deceptive Trade Practices Act (DTPA) is one of the strongest consumer protection statutes in the country, with treble damages for knowing violations. A $10,000 claim can become a $30,000 judgment plus attorney fees. And federal requirements — COPPA for children's privacy, ROSCA for subscription billing — still apply with full force regardless of the state's laissez-faire approach to education regulation.
The result is a legal environment where your biggest compliance risks aren't from the Texas Education Agency — they're from unhappy parents armed with the DTPA, the FTC enforcing COPPA, and credit card chargebacks from unclear billing practices.
Texas is one of the most permissive states in the country for private schools. Understanding what the state does NOT require is just as important as knowing what it does.
Texas treats private schools as essentially private enterprises operating under the free market. The state imposes virtually no regulatory requirements on private education providers, a position that has been affirmed by the Texas Supreme Court in multiple decisions.
What Texas Does NOT Require of Private Schools
- No state registration required — Unlike Florida (annual DOE registration) or California (Private School Affidavit), Texas has no registration or filing requirement for private schools.
- No accreditation required by law — Private schools in Texas are not required to hold accreditation from any agency, state or national.
- No curriculum approval or state testing — Texas does not review, approve, or mandate curriculum for private schools. No state standardized testing is required.
- No teacher certification requirements — Private school teachers in Texas are not required to hold state teaching certificates or any specific credentials.
- No attendance reporting to the state — Private schools do not report attendance data to TEA or any other state agency.
- No immunization records filed with state — While students must meet immunization requirements, private schools maintain records internally without state reporting.
TEA Has NO Authority Over Private Schools
The Texas Education Agency (TEA) explicitly states that it has no regulatory authority over private schools. TEA does not approve, accredit, license, or oversee private schools in any capacity. This is a fundamentally different relationship than what exists in most other states where the department of education has at least some oversight role.
Texas private schools are free from virtually all state regulation. The Texas Supreme Court has repeatedly affirmed this hands-off approach, holding that private schools are not subject to state control over their educational programs, staffing, or operations. The only requirement is that schools pursue a course of study in good faith that includes reading, spelling, grammar, mathematics, and good citizenship.
The "Bona Fide" Private School Standard
While Texas doesn't regulate private schools, the state does recognize a distinction between a genuine private school and a parent simply keeping a child home without education. Under Texas law (Texas Education Code § 25.086), a child attending a private school is exempt from compulsory attendance at public school if the school:
- Pursues a course of study in good faith
- Covers reading, spelling, grammar, mathematics, and good citizenship
- Operates in a bona fide manner (not a sham to avoid compulsory attendance)
This standard is extremely minimal and is almost never enforced against operating schools.
Voluntary Accreditation Options
Although not required, many Texas private schools voluntarily seek accreditation for credibility and college admissions purposes:
- Texas Private School Accreditation Commission (TEPSAC) — A state-recognized voluntary accreditation body for Texas private schools
- SACS/Cognia (formerly AdvancED) — The regional accreditor covering the southern states, including Texas
- ACSI (Association of Christian Schools International) — For faith-based schools
- NAEYC, Montessori accreditors — For specialty programs
While the state doesn't regulate your school, families can still sue you under the Texas Deceptive Trade Practices Act if you make misleading claims about your school's accreditation, outcomes, curriculum quality, teacher qualifications, or any other material aspect of the educational service. Regulatory freedom does not equal litigation freedom.
Because Texas doesn't require accreditation, the temptation is to either overstate voluntary accreditation or imply credentials the school doesn't have. This is where the DTPA becomes dangerous.
Common Accreditation Marketing Mistakes
- "Accredited school" without specifying by whom — parents may assume regional accreditation when you hold a lesser credential
- "State-recognized" — Texas doesn't recognize, approve, or endorse private schools, so this claim is misleading
- "Credits accepted by colleges" — Credit transfer is at the discretion of receiving institutions; blanket claims are indefensible
- Listing accreditation that has lapsed — If your accreditation expired or was revoked, you must immediately remove all references
- "Equivalent to public school" — This is a subjective and potentially misleading claim under DTPA
Safe Accreditation Disclosures
- Name the specific accrediting body: "Accredited by Cognia (formerly AdvancED)"
- State the accreditation date and renewal cycle
- Be clear about what is accredited (the school vs. a specific program)
- If not accredited, state that clearly: "We are not currently accredited. Texas does not require accreditation for private schools."
The Texas DTPA (Tex. Bus. & Com. Code § 17.41 et seq.) is your single biggest legal risk when operating an online school in Texas. It is one of the most consumer-friendly statutes in the United States.
The DTPA was enacted to protect Texas consumers from false, misleading, and deceptive business practices. It applies broadly to any trade or commerce in the state, including educational services sold to families. Parents enrolling children in your online school are "consumers" under the DTPA.
Why the DTPA Is Especially Powerful
- Low causation threshold — The consumer need only show the deceptive practice was a "producing cause" of damages, not the traditional "proximate cause." This is a significantly easier standard to meet.
- No intent required for basic violations — A consumer can recover actual damages even for unintentional misrepresentations. Ignorance is not a defense.
- Treble damages for knowing/intentional violations — If the court finds you acted "knowingly" or "intentionally," damages can be multiplied by up to three times.
- Attorney fees — Prevailing consumers recover their attorney fees, which makes even small claims economically viable to pursue.
- Broad "laundry list" of violations — Section 17.46 contains a long list of specific deceptive acts, many of which are directly relevant to online schools.
The DTPA "Laundry List" (§ 17.46) Applied to Schools
Key prohibited acts that frequently apply to online education providers:
- Causing confusion as to source or certification — Implying your school is state-approved, accredited by a body you're not accredited by, or affiliated with institutions you're not affiliated with
- Representing goods or services have characteristics they don't have — Claiming curriculum features, teacher qualifications, or technology capabilities that don't exist or are overstated
- Representing goods or services are of a particular quality when they aren't — Overstating the quality of instruction, student-teacher ratios, or educational outcomes
- Advertising goods or services with intent not to sell them as advertised — Bait-and-switch tactics with program descriptions or pricing
- Failing to disclose information to induce a transaction — Hiding fees, material limitations, or conditions that would affect the enrollment decision
How the DTPA Applies to Online School Marketing
| Marketing Claim | DTPA Risk Level | Issue |
|---|---|---|
| "Accredited online school" | HIGH | Must specify accreditor; vague claim implies regional accreditation |
| "100% college acceptance rate" | HIGH | Requires substantiation; misleading if selective about which students are counted |
| "Certified teachers in every class" | MEDIUM | Must be accurate; "certified" can mean different things in Texas vs. other states |
| "Small class sizes (max 15 students)" | MEDIUM | Creates contractual commitment; must be honored or disclosed if exceeded |
| "State-recognized private school" | HIGH | Texas does NOT recognize, approve, or endorse private schools |
| "Full tuition refund within 30 days" | LOW | Clear and specific; just make sure you honor it consistently |
| "Award-winning curriculum" | MEDIUM | Must be able to identify specific awards; stale awards may mislead |
| "Starting at $199/month" | MEDIUM | Must disclose mandatory fees, materials costs, and what is NOT included at that price |
DTPA treble damages mean a $10,000 claim can become a $30,000 judgment plus attorney fees. If you have 50 families making similar claims, a pattern of deceptive marketing can quickly become catastrophic. The DTPA also allows class actions, so one unhappy parent can become a class representative for all similarly situated families.
DTPA Demand Letter Requirement
Before filing a DTPA lawsuit, a consumer must send a written demand letter at least 60 days before filing suit (§ 17.505). This gives you a window to settle the claim. If you receive a DTPA demand letter:
- Take it seriously — this is a precursor to litigation
- Consult an attorney immediately
- Consider making a settlement offer within the 60-day window
- If you make a "reasonable" settlement offer that is rejected, the consumer's treble damages claim may be limited
Legal Liability Stack for Texas Online Schools
Understanding the DTPA damages framework helps you appreciate the financial risk of non-compliance.
Damages Tiers
- Actual damages — Available for any DTPA violation, even unintentional. Measured by the consumer's economic harm (tuition paid, opportunity cost, etc.).
- Up to 2x additional damages for "knowing" violations — If you knew or should have known the representation was false, the court can award up to two times actual damages on top of the actual damages (total: up to 3x).
- Up to 2x additional damages for "intentional" violations — Same multiplier, but based on intentional deception rather than negligent deception.
- Mental anguish damages — Available for knowing or intentional violations, separate from economic damages.
- Attorney fees — Prevailing consumers recover reasonable attorney fees, making even small-dollar claims worth pursuing for plaintiffs' attorneys.
Who Enforces the DTPA?
- Individual consumers (parents) — The DTPA provides a private right of action. Any parent who feels they were misled can sue directly.
- Texas Attorney General — The Consumer Protection Division of the Texas AG's office can investigate and bring enforcement actions for DTPA violations affecting multiple consumers.
- Class actions — Multiple consumers can bring class action DTPA claims, significantly multiplying potential liability.
Practical Example: Online School Scenario
Imagine an online school that advertises "small class sizes of 12 students maximum" but routinely places 25-30 students in each live session. If 100 families each paid $5,000 in annual tuition:
- Actual damages per family: potentially $2,500-$5,000 (difference in value received)
- If "knowing" violation: up to $15,000 per family
- 100 families x $15,000 = $1,500,000 potential exposure
- Plus attorney fees for all 100 families
Recording live online classes involves both state wiretapping law and federal COPPA requirements. Texas has a relatively permissive recording law, but federal obligations still apply.
Texas is a one-party consent state under Tex. Penal Code § 16.02. This means that only one party to a conversation or communication needs to consent to the recording. If the teacher initiating the recording is a party to the class session, that teacher's own consent is legally sufficient under Texas state law.
What One-Party Consent Means for Online Classes
- Teacher-initiated recording is sufficient — If your teacher is recording their own class session, they are a party to the communication and their consent satisfies Texas law.
- No requirement to notify students — Under Texas state law alone, you are not required to inform students or parents that the class is being recorded (the teacher's own consent is enough).
- Third-party recording requires consent — If someone who is NOT a party to the class (e.g., an administrator monitoring remotely) records the session, at least one party must consent to that recording.
But: Best Practice Is Still to Notify
Even though Texas law doesn't require it, we strongly recommend notifying all participants that class sessions are recorded:
- Multi-state enrollment — If you have students in two-party consent states (California, Florida, Illinois, etc.), those states' laws may also apply. You need ALL-party consent when any participant is in a two-party consent state.
- Trust and transparency — Parents expect to be told when their children are being recorded. Failing to disclose creates DTPA risk even if recording consent law doesn't require it.
- DTPA exposure — If you fail to disclose recording and a parent considers it a material omission, they may argue it's a DTPA violation for failing to disclose information that would affect the enrollment decision.
COPPA Still Requires Parental Consent
Regardless of Texas state recording law, if any students are under 13 years old, class recordings contain COPPA-covered personal information (voice, image, potentially name). Under COPPA:
- You must obtain verifiable parental consent before collecting this information
- The "school official" exception may apply if the school is using recordings solely for educational purposes and not disclosing them to third parties
- You must have a data retention and deletion policy for recordings
- Parents have the right to review and request deletion of recordings of their children
Texas's one-party consent law simplifies class recording from a state law perspective — your teacher's own consent is sufficient. But COPPA consent for under-13 students is still required regardless of state law, and multi-state enrollment means you should build an all-party notification system anyway.
Recommended Recording Consent Framework
- Enrollment agreement clause — Include explicit recording consent in the enrollment agreement, covering what is recorded, how long recordings are stored, who can access them, and opt-out alternatives
- Class-by-class announcement — Display a banner or make a verbal announcement at the start of each recorded session
- Camera-off option — Allow students to participate with cameras off if parents decline video recording consent
- Retention policy — Define how long recordings are kept (30 days? End of semester?) and auto-delete after that period
Texas takes a lighter regulatory touch on student data privacy compared to states like California (SOPIPA) or New York (Education Law § 2-d). The state relies more on industry self-regulation and federal law as the privacy floor.
Texas has several laws that touch on student data and privacy, but they primarily target public school districts and their technology vendors rather than private schools directly. However, understanding this framework helps private schools adopt best practices and prepare for potential future regulation.
Texas Student Privacy Alliance
The Texas Student Privacy Alliance is a voluntary industry framework where EdTech companies pledge to protect student data. It is modeled after the national Student Privacy Pledge and encourages vendors to commit to specific data handling practices:
- Not selling student personal information
- Not using student data for targeted advertising
- Implementing reasonable security measures
- Providing transparency about data collection and use
- Allowing data access and deletion requests
While participation is voluntary, signing the pledge creates contractual obligations that families and regulators may enforce.
HB 2087 (2019) — Cybersecurity for Schools
HB 2087 requires Texas school districts to adopt cybersecurity policies and designate a cybersecurity coordinator. While this law applies directly to public school districts, it establishes an industry standard that private schools should be aware of:
- Written cybersecurity policy required
- Annual security awareness training for staff
- Incident response plan
- Designated cybersecurity coordinator
- Regular security assessments
Even though private schools aren't required to comply, adopting these practices demonstrates reasonable care and can help defend against negligence claims if a data breach occurs.
Texas Identity Theft Enforcement and Protection Act
Texas Business & Commerce Code § 521 requires businesses that own or maintain sensitive personal information of Texas residents to:
- Implement reasonable security measures — Protect personal information from unauthorized access, use, or disclosure
- Data breach notification — Notify affected Texas residents within 60 days of discovering a breach involving their personal information
- Notify the Texas AG — If a breach affects 250+ Texas residents, you must also notify the Texas Attorney General
- Data disposal — When disposing of personal information, take reasonable measures to make it unreadable or indecipherable
Emerging Legislation: Texas Data Privacy and Security Act (TDPSA)
Texas has been considering comprehensive consumer privacy legislation. The Texas Data Privacy and Security Act (HB 4 / SB 820) was signed into law in 2023 and took effect July 1, 2024. Key provisions include:
- Applies to businesses processing data of Texas residents (subject to revenue/volume thresholds)
- Consumer rights: access, correction, deletion, data portability, opt-out of targeted advertising
- Heightened protections for children's data (under 13)
- Controller/processor relationships must be governed by contracts
- 30-day cure period before AG enforcement
COPPA as the Federal Floor
For online schools serving children under 13, COPPA remains the primary privacy obligation regardless of state law:
- Verifiable parental consent before collecting children's personal information
- Clear and comprehensive privacy policy
- Data minimization — collect only what's necessary
- Parental right to review, delete, and opt out
- Reasonable data security measures
Texas relies more on industry self-regulation and federal law for student privacy than on state mandates targeting private schools. However, the Texas Data Privacy and Security Act now adds a comprehensive state layer. Private schools should monitor this evolving landscape and build privacy programs that exceed minimum requirements.
When your school uses third-party platforms (Zoom, Google Classroom, Canvas, etc.), student data flows to those vendors. Texas's lighter regulatory framework for private schools doesn't reduce your federal COPPA obligations when sharing children's data with vendors.
Vendor Selection Best Practices
- Check the Student Privacy Pledge — Prioritize vendors who have signed the national Student Privacy Pledge or the Texas Student Privacy Alliance
- Review vendor privacy policies — Ensure the vendor doesn't use student data for advertising, profiling, or purposes unrelated to the educational service
- Use education-tier products — Google Workspace for Education has different privacy protections than consumer Gmail; Microsoft 365 Education differs from consumer Office
- Data Processing Agreements — Execute DPAs with all vendors that handle student personal information
Data Breach Preparation
If a vendor experiences a data breach affecting your students' information:
- Your school may be legally obligated to notify affected families under the Texas Identity Theft Act
- If 250+ Texas residents are affected, the Texas AG must also be notified
- You must notify families within 60 days of discovery
- Ensure your vendor contracts include breach notification obligations from the vendor to you
Unlike California (ARL) or Florida (Fla. Stat. § 501.165), Texas does not have a specific auto-renewal statute. However, federal law and the DTPA still create significant obligations for recurring billing.
Texas does NOT have a specific auto-renewal law comparable to California's Automatic Renewal Law (Bus. & Prof. Code § 17600-17606) or Florida's Statute § 501.165. This is consistent with Texas's generally lighter regulatory approach. However, the absence of a specific statute does not mean you can bill however you want.
Federal ROSCA Still Applies
The federal Restore Online Shoppers' Confidence Act (ROSCA, 15 U.S.C. § 8401-8405) applies to all online negative-option billing nationwide, including Texas. Under ROSCA:
- Clear disclosure — You must clearly and conspicuously disclose all material terms of the transaction before obtaining billing information
- Affirmative consent — You must obtain the consumer's informed consent before charging them
- Simple cancellation — You must provide a simple mechanism for canceling recurring charges
DTPA Covers Deceptive Billing
Even without a specific auto-renewal statute, the DTPA's broad prohibition on deceptive practices captures misleading billing practices:
- Hidden auto-renewal terms — Burying renewal provisions in fine print could constitute "failing to disclose information to induce a transaction"
- Unclear pricing — Advertising a price that doesn't include mandatory fees is deceptive under the DTPA laundry list
- Difficult cancellation — Making it unreasonably difficult to cancel a subscription could be an unconscionable action under § 17.50(a)(3)
- Charging after cancellation request — Continuing to bill after a parent has communicated cancellation is actionable under both DTPA and contract law
Credit Card Network Rules
Visa, Mastercard, and other card networks have their own requirements for recurring billing that apply regardless of state law:
- Clear disclosure of recurring nature before first charge
- Transaction receipts for each recurring charge
- Notification before charging when the recurring amount changes
- Prompt processing of cancellations — typically within one billing cycle
- Chargeback liability — merchants bear the burden of proving consent to recurring charges in chargeback disputes
Billing Compliance Legal Stack for Texas
Best Practices (Even Without a Specific Statute)
Even though Texas doesn't have a specific auto-renewal law, transparent billing reduces DTPA exposure and chargebacks:
- Clearly disclose auto-renewal terms in the enrollment agreement with a separate acknowledgment checkbox
- Send email reminders before each renewal charge (7-14 days recommended)
- Provide a clear, simple cancellation process (online preferred over phone-only)
- Send confirmation when a cancellation is processed
- Stop charging immediately upon cancellation — don't wait for the "next billing cycle" if possible
- If you have families in California or Florida, you must comply with those states' stricter auto-renewal laws for those families
If your online school enrolls families from multiple states, you must comply with the strictest auto-renewal law applicable to any of your customers. In practice, this means most online schools should build their billing practices to comply with California's ARL, which is the most prescriptive auto-renewal statute in the country.
Understanding which agencies have jurisdiction over your online school — and which do not — helps you prioritize compliance efforts and respond appropriately to inquiries.
Texas online private schools face a unique regulatory landscape: the state education agency has no authority, but other agencies can investigate based on consumer protection, privacy, and federal law violations.
| Agency | Authority Over Private Schools? | Jurisdiction / Trigger |
|---|---|---|
| Texas Education Agency (TEA) | NO | TEA has no regulatory authority over private schools. Cannot investigate, approve, or sanction private schools. |
| Texas AG — Consumer Protection Division | YES | DTPA enforcement. Can investigate deceptive marketing, hidden fees, misleading accreditation claims. Triggered by consumer complaints. |
| Federal Trade Commission (FTC) | YES | COPPA enforcement (children's privacy), ROSCA (subscription billing), FTC Act (deceptive practices). Triggered by complaints, sweeps, or competitor reports. |
| Texas State Office of Administrative Hearings (SOAH) | SOMETIMES | Provides administrative hearing services for various state agencies. May be involved in dispute resolution if another agency initiates action. |
| Texas Department of Information Resources (DIR) | NO (directly) | Sets cybersecurity standards for state agencies and public schools. Standards serve as industry benchmarks for private schools. |
| U.S. Department of Education | NO (typically) | Only involved if the school participates in federal programs. Most private K-12 schools do not. |
Texas AG Consumer Protection Division
The Texas Attorney General's Consumer Protection Division is the most likely state agency to investigate an online private school. Common triggers include:
- Consumer complaints — Parents filing complaints about misleading marketing, hidden fees, refund refusals, or billing disputes
- Pattern of complaints — Multiple complaints about the same issue raise the priority of investigation
- BBB complaints — Better Business Bureau complaints are often forwarded to the AG's office
- Media attention — News stories about school practices can trigger AG investigation
- Competitor reports — Other schools or industry groups may report suspected violations
If You Receive an AG Inquiry
- Take it seriously — respond within the requested timeframe
- Consult an attorney before responding
- Cooperate but don't volunteer information beyond what's requested
- Preserve all relevant documents and communications
- The AG often seeks voluntary resolution before formal enforcement — this is an opportunity to resolve issues before they escalate
The Texas AG can seek injunctive relief, civil penalties up to $20,000 per DTPA violation (up to $250,000 per violation if the victim is elderly or disabled), restitution for affected consumers, and attorney fees. A pattern of DTPA violations across many families can result in penalties in the millions.
- Enrollment agreement review
- Handbook excerpt review
- Refund policy analysis
- DTPA risk assessment
- Written red flag report
- Recommended revisions
- All documents reviewed
- DTPA marketing audit
- COPPA compliance assessment
- Billing flow review
- Privacy policy analysis
- Regulatory exposure report
- 30-min strategy call
- Custom privacy policy
- COPPA compliance program
- Parental consent forms
- Data processing agreements
- Vendor audit checklist
- Recording consent system
- Implementation guidance
No. Texas does not require private schools to register with the state, file any annual paperwork, or obtain approval from the Texas Education Agency. TEA has explicitly stated it has no regulatory authority over private schools. This is a stark contrast to states like Florida (annual DOE registration required) or California (Private School Affidavit must be filed between October 1-15 annually). However, your school must be a "bona fide" private school that pursues a course of study in good faith covering reading, spelling, grammar, mathematics, and good citizenship.
The Texas Deceptive Trade Practices Act (Tex. Bus. & Com. Code § 17.41 et seq.) is one of the most consumer-friendly statutes in the United States. It prohibits false, misleading, and deceptive business practices. For online schools, this means any misleading marketing claim — about accreditation, teacher qualifications, educational outcomes, class sizes, or pricing — can trigger DTPA liability. Consumers (parents) only need to show the deceptive practice was a "producing cause" of their damages (a lower threshold than traditional "proximate cause"). Knowing violations can result in up to three times actual damages, plus the consumer recovers their attorney fees. This makes the DTPA the single biggest legal risk for online schools operating in Texas.
Yes. Texas is a one-party consent state under Tex. Penal Code § 16.02. If the teacher is recording their own class, their own consent is legally sufficient under Texas state law. You are not required to notify other participants under Texas recording law. However, we strongly recommend notifying all participants anyway for three reasons: (1) if any student is in a two-party consent state like California or Florida, that state's law may also apply; (2) COPPA requires parental consent for collecting personal information (including voice/image) from children under 13 regardless of state recording law; and (3) failing to disclose recording could be argued as a DTPA violation for material omission.
Texas does not have a student privacy law as comprehensive as California's SOPIPA or New York's Education Law § 2-d that directly targets private schools. Texas relies more on industry self-regulation through the Texas Student Privacy Alliance (a voluntary pledge framework) and federal law (COPPA) as the privacy floor. However, the Texas Data Privacy and Security Act (TDPSA), effective July 2024, adds broad consumer data privacy obligations including heightened protections for children's data. The Texas Identity Theft Enforcement and Protection Act also requires data breach notification within 60 days and reasonable data security measures for all businesses holding Texans' personal information.
No, Texas does not have a specific auto-renewal or automatic subscription renewal statute like California's ARL (Bus. & Prof. Code § 17600-17606) or Florida's Fla. Stat. § 501.165. However, this does not mean you can bill however you want. Federal ROSCA still requires clear disclosure, informed consent, and simple cancellation mechanisms for online negative-option billing. Additionally, deceptive billing practices — hidden renewal terms, difficult cancellation processes, or charging after cancellation — can trigger DTPA liability with treble damages. Credit card network rules also impose their own recurring billing requirements.
Yes. While the Texas Education Agency (TEA) has no authority over private schools, the Texas Attorney General's Consumer Protection Division absolutely can investigate your online school under the DTPA. The AG can act on consumer complaints, patterns of complaints, BBB referrals, or media reports. The AG can seek injunctive relief, civil penalties of up to $20,000 per DTPA violation (up to $250,000 per violation if the victim is elderly or disabled), restitution for affected consumers, and attorney fees. Additionally, the FTC can investigate for COPPA and ROSCA violations independent of any state action. Do not mistake the absence of education regulation for the absence of legal oversight.
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