Information
Through Breck Dumas, Fox Trade
Revealed
Dec. 27, 2023, 9:13 p.m. ET
The Federal Business Fee on Wednesday introduced it has sued Grand Canyon College (GCU), turning into the second one company beneath the Biden management to do so in opposition to the biggest Christian faculty within the country throughout the previous few months in what the college says is a coordinated assault by means of a couple of companies in opposition to the establishment.
The FTC mentioned in a press free up it filed swimsuit in federal courtroom in opposition to GCU, its marketer Grand Canyon Training, Inc. and its president and CEO Brian Mueller, claiming the defendants used misleading promoting and engaged in unlawful telemarketing.
The grievance says the Arizona-based faculty misled potential doctoral scholars concerning the period of time it could take to complete its speeded up program, deceptively advertised the college as a nonprofit, and illegally referred to as potential scholars who submitted their touch knowledge at the faculty’s site however asked to not be contacted.
“Grand Canyon deceived scholars by means of preserving itself out as a non-profit establishment and misrepresenting the prices and selection of classes required to earn doctoral levels,” Samuel Levine, director of the FTC’s Bureau of Shopper Coverage, mentioned in a remark. “We will be able to proceed to aggressively pursue those that search to make the most of scholars.”
The grievance accuses GCU of violating the FTC Act and the Telemarketing Sale Regulations, and is looking the U.S. District Court docket in Arizona to drive GCU to compensate customers for the alleged violations and to ban the college “from additional violations of the legislation.”
A museum at Grand Canyon College. AP
A spokesperson for GCU didn’t right away reply to FOX Trade’ request for remark at the lawsuit, however Mueller instructed Fox Information Virtual in overdue October that he believes the college is unfairly being focused by means of the Biden management, announcing a couple of federal companies had been interested in a coordinated assault in opposition to the college.
In a while after that, on Oct. 31, the Division of Training (DOE) fined GCU $37.7 million, announcing an investigation carried out by means of the workplace of Federal Pupil Support discovered the college “lied” to over 7,500 former and present scholars about the price of its doctoral techniques over a number of years.
The DOE mentioned in a press free up that GCU “falsely marketed” a cheaper price for its doctoral techniques, including that about 98% of scholars ended up paying greater than the marketed value.
Lina Khan is the chairperson of the Federal Business Fee. Getty Pictures
Mueller has argued the federal investigations are tied to the DOE denying GCU’s effort to transform right into a nonprofit establishment in 2018. The dep. denied GCU’s nonprofit standing for functions of federal scholar monetary assist, which continues to categorise the college as a for-profit entity.
In a press convention closing month, Mueller vowed GCU would enchantment the DOE’s nice — the biggest the company has ever issued — and mentioned the college does no longer misinform or lie to scholars in any respect.
FOX Information Virtual’s Joshua Nelson contributed to this record.
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