Thin ice if you ask me.
But nobody did and it was a a long time before the data protection act had been heard of. However even now my FI students are allowed to read our students records in the same way, as part of the course involves monitoring our PPL students and following their progress. A statement to that effect is contained in the pilots order book and signed for by all students.
You may also be interested to know that the student, the instructor and the CFI have long since gone to the great hangar in the sky.
Jumping to conclusions can also put you on thin ice.