Have the ability to disable the "Statistics" button
Learning Suite should implement the ability to disable the statistics button for those who do not want to be compared with other students. Circumstances that factor into how well students do in their classes differ from student to student and it is of no benefit to see that you are not "doing well" compared to other students when you have a red bar that is lower than someone else's. This function does not prepare you to do better on standardized tests which only focuses on skill, not class rank. Rather, this function tells you that if you are doing better than your classmates, you have convinced yourself you are "doing well." This is a major trigger point for those who want to avoid peer to peer comparisons and focus more on improving themselves for their own sake, not to have their confidence shattered by a graph that labels you with comments such as "Someone got an A.. Good Job!" or "Someone got the lowest score.. it was you!"
Teachers can disable this option for their classes. If it's that much of an issue for you, I would talk to them, at least until this gets resolved one way or the other. Also maybe just try not clicking on the statistics button if you don't want to see that? As far as FERPA goes, I'm pretty sure it's only a FERPA violation if it can be linked back to a particular student. Since it doesn't tell you the name of the student in relation to the grade from the statistics, I think it's fine.
Adam Aposhian commented
I also think that statistics should be disabled by default for all classes, and professors can enable it if they wish to. If it is enabled by default, then the students scores are being released to the class without permission of the students or the professors. This seems to be a violation of FERPA, which states that "Generally, schools must have written permission from the parent or eligible student in order to release any information from a student's education record." Among the certain parties allowed to receive student record without consent, other students in the class are not one of those parties.