FTC sues Grand Canyon University over alleged deceptive advertising and illegal telemarketing By Reuters
© Reuters. FILE PHOTO: The Federal Trade Commission seal is seen during a press conference at FTC headquarters in Washington, USA, July 24, 2019. REUTERS/Yuri Gripas/File Photo
WASHINGTON (Reuters) – The U.S. Federal Trade Commission said on Wednesday it had filed a lawsuit against Grand Canyon University, accusing it of deceptive advertising, illegal telemarketing and misrepresenting the school as a nonprofit organization.
The FTC sued the CEO and university of Grand Canyon Education (NASDAQ:) Inc (GCE) in U.S. District Court in Arizona.
In a statement, the FTC accused them of “deceiving doctoral students about the cost of the doctoral program, course requirements, and that it is a non-profit organization, and engaging in deceptive and degrading telemarketing practices.”
The committee claims that “the university operates for the benefit of GCE and its shareholders and pays 60% of its profits to GCE.”
GCE describes the university as a “partner” in its regulatory filings.
The Arizona-based university did not immediately respond to a request for comment.
According to CNBC, the lawsuit comes after the U.S. Department of Education fined the university $37.7 million for misrepresenting doctoral program costs.
According to the Department of Education, less than 2 percent of the school’s doctoral graduates complete the program within the advertised cost, and nearly 78 percent of them are taking five or more consecutive courses.
