Lead: The University of North Carolina at Chapel Hill has rescinded a recently adopted policy that authorized administrators to secretly record classroom sessions, following faculty backlash and legal scrutiny. Chancellor Lee Roberts told faculty the policy “clearly has not achieved that aim” of clarity and reassurance and said the university will not secretly record classes unless a new policy is developed. The flap traces to covert recordings made in 2024 at Kenan‑Flagler Business School tied to complaints about a longtime instructor and a parallel federal lawsuit by the instructor alleging retaliation. The reversal signals heightened faculty governance tensions and potential legal exposure for public universities that adopt surveillance policies without broad faculty buy-in. Lawyers and faculty leaders warn institutions to revisit due process, privacy safeguards, and selective enforcement practices before attempting similar measures.