FTC sues Grand Canyon Education, alleging 'deceiving' and 'abusive' marketing practices

The Federal Trade Commission on Wednesday sued education-services company Grand Canyon Education Inc. (LOPE), which does much of its work with the Phoenix-based Grand Canyon University, accusing them of "deceiving" prospective students about program costs and "deceptively" marketing the school as a nonprofit. The agency - which is suing the university and Chief Executive Brian Mueller in the lawsuit - alleged that the company and the university told prospective doctoral students that the total cost of GCU's "accelerated" doctoral programs amounted to the equivalent of 20 courses. "In reality, the school requires that almost all doctoral students take additional 'continuation courses' that add thousands of dollars in costs," the FTC said in a statement. The FTC also alleged that GCU used "abusive telemarketing calls" in an effort to increase enrollment, advertising online, asking prospective students to send contact information digitally, and then using that information to "illegally contact people who have specifically requested not to be called." The agency is asking for steps to prevent future violations, as well as financial and other relief. Grand Canyon University was not immediately available for comment. Shares were up 0.5% after hours.

https://www.morningstar.com/news/marketwatch/20231227510/ftc-sues-grand-canyon-education-alleging-deceiving-and-abusive-marketing-practices