Hi John et al, unfortunately no update yet.
We did look at the the idea of implementing an SIS import field that would automatically trigger the existing "restrict students from seeing other sections" feature, however as others such as snugent have noted, that doesn't apply in cross-listed Discussions -- so it'd be only a partial fix, or a fix for courses that don't use Discussions.
Let's call this Option 1 -- would that be an acceptable improvement for most of these use cases?
As you think about that, I want to highlight one thing that @mjennings suggested: "[the] main purpose [of Canvas cross-listing] is to reduce the redundant work of an instructor with multiple sections and to ensure consistent content, communication & settings between sections with different instructors". I agree: cross-listing is a time-saver, and we do want to keep this feature in order to make life easier for teachers. But we may not be able to solve all the things:
For example, we are still in the research and planning phase for work that will make managing course copies / maintaining updates and versions much easier, however it's too soon to know if that will fully address this particular issue. Likely it could address the "consistent content ... & settings" that Matthew pointed out, but probably not the "communication".
And that's really the hard part, here: Restricting students from viewing other sections' participation in Discussions. One idea has been to automatically create Groups from Sections, but that's more difficult than it sounds; I found this feature idea from late last year that was archived: Create Groups Based on Sections -- this is at least enlightening in terms of the complexity of such a solution, e.g. enrollment adjustment.
Let's call this Option 2, acknowledging that it actually may not be feasible.
The only other option that I can see would be to re-design Announcements and Discussions to be "section-aware", so that, as a teacher, I can create one Discussion or Announcement that spawns a different "copy" of that thread for each section. This could be an extension of the Graded Discussion differentiation feature. Is there a feature request for this already? Maybe @Renee_Carney knows!
Let's call this Option 3 -- it'd be a big undertaking, and may in some ways complicate the user experience for teachers, but I'd leave that to a Product Manager to think through 
Finally, we can think about an Option 4, which would be to mask a student's identity from peers in other sections, if they were identified as "directory restricted" as an admin.
What do you all think? Option 1 is clearly the easiest to develop. Option 4 may be the next easiest, but not really elegant -- and may need to be discussed with counsel / lawyers. Options 2 & 3, the section-aware options, are certainly bigger / hairier, but may be things the Community wants to prioritize beyond this particular issue.
Other ideas for addressing this particular FERPA interpretation with the least amount of impact on the roadmap are, of course, welcome.
This discussion post is outdated and has been archived. Please use the Community question forums and official documentation for the most current and accurate information.