The Federal Trade Commission is suing Grand Canyon University and its president over what it says were deceptive advertising practices.
In the lawsuit filed Wednesday, the FTC accused Grand Canyon University of misleading potential doctoral students about the cost and course requirements. In addition, the commission contends the school misrepresented itself as a nonprofit organization and misused telemarketing calls to increase enrollment.
“Marketing activities have also resulted in millions of abusive telemarketing calls to consumers who have specifically requested that Defendants not solicit them, and to individuals on the National Do Not Call Registry,” the lawsuit reads.
In addition to the university, the lawsuit names Grand Canyon Education Inc. and GCU President Brian Mueller as defendants. GCE is a for-profit company and the exclusive provider of marketing services for GCU, according to the lawsuit.
Grand Canyon Education owned GCU until 2018. Mueller also serves as CEO of Grand Canyon Education.
The lawsuit follows a $37.7 million fine levied in October by the U.S. Department of Education on the university over similar claims.
The university did not immediately respond to a request for comment Wednesday.
The Department of Education fine, which the university plans to appeal, focused on how the university advertised its doctoral program.
The FTC, in a news release on Wednesday, cited the Department of Education’s investigation leading to the fine. It concluded that fewer than 2% of graduates from the doctoral program finished their program within the costs advertised.
Mueller has previously disputed the fine, describing the dispute as “government outreach,” and said the school, the largest private Christian university in the country, was being targeted.
“Grand Canyon deceived students by holding itself out as a non-profit institution and misrepresenting the costs and number of courses required to earn doctoral degrees,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection, in the news release. “We will continue to aggressively pursue those who seek to take advantage of students.”
Helen Rummel covers higher education for The Arizona Republic. Reach her at [email protected]. Follow her on X, formerly Twitter: @helenrummel.
This article originally appeared on Arizona Republic: Federal Trade Commission sues Grand Canyon University over advertising
Amanda Smith is a dedicated U.S. correspondent with a passion for uncovering the stories that shape the nation. With a background in political science, she provides in-depth analysis and insightful commentary on domestic affairs, ensuring readers are well-informed about the latest developments across the United States.
