In the UK, the Jisc has been doing some great work on learning analytics that doesn't seem to have gotten wide visibility beyond the UK yet; I wanted to particularly share their "Code of Practice for Learning Analytics" which addresses privacy and other ethical issues involved in the deployment of learning analytics. While of course some of this work is adapted for specific UK legal requirements, the broader principles are highly relevant. See

There's also a very helpful literature review that they developed as part of the effort, which is at:

http://repository.jisc.ac.uk/5661/1/Learning_Analytics_A-_Literature_Review.pdf

For a broad overview of Jisc's work in the learning analytics area, and pointers to other material, see

Clifford Lynch Director, CNI