(CTN News) – The U.S. Federal Trade Commission (FTC) has taken legal action against Grand Canyon University, accusing them of deceptive advertising, illegal telemarketing, and misrepresentation as a nonprofit institution.
The complaint was filed against Grand Canyon Education Inc (GCE), along with its CEO and the university itself, in the U.S. District Court for the District of Arizona.
The FTC alleges that the university has deceived prospective doctoral students regarding the cost and requirements of its programs, as well as falsely claiming nonprofit status.
Additionally, the commission claims that the university has engaged in deceptive and abusive telemarketing practices.
According to the FTC, the university operates for the profit of GCE and its stockholders, with 60% of its revenue being paid to GCE. While GCE refers to the university as a “partner” in regulatory filings, the university has denied these allegations, stating that they are unsubstantiated.
They have expressed their intention to take all necessary measures to refute the claims.
The university also criticized the federal FTC government for targeting a Christian institution that is actively addressing the significant challenges present in higher education.
This lawsuit is a major blow to the university, resulting in a hefty fine and tarnishing its academic reputation. The U.S. FTC Education Department’s findings reveal a significant discrepancy between advertised and actual costs of doctoral programs.
This misrepresentation has negatively impacted students’ finances and hindered their academic progress. Less than 2% of graduates complete their program within the advertised cost, raising questions about the university’s commitment to accurate information.
Additionally, 78% of students had to take five or more continuation courses, highlighting a lack of guidance and support.
This misrepresentation not only has financial implications but also damages trust and may impact future enrollment.
The university must pay the fine and rectify its misleading practices by reassessing policies, providing accurate information, and implementing measures to support students. Swift action is necessary to address concerns raised by the U.S. Edu.