The U.S. Federal Trade Commission has filed a lawsuit against Grand Canyon University for deceptive advertising, illegal telemarketing, and misrepresenting the school as a nonprofit institution, according to Reuters.
Grand Canyon University President Brian Mueller speaks during a Nov. 16 press conference regarding the university’s appeal to recent U.S. Department of Education decisions.GCU News
The commission voted 3-0 to authorize staff to file the complaint in U.S. District Court for the District of Arizona. FTC v. GCE, 2023 D. Ariz.
FTC alleges the university "has been operated for the profit of GCE and its stockholders and pays 60% of its revenue to GCE,” although GCE describes Grand Canyon as a "partner" in regulatory filings.
The Arizona-based university denied what it said were "unsubstantiated allegations" and said it would take all measures necessary to refute them.
In November, the university notified the U.S. Department of Education that it would appeal an “unprecedented and unjust $37.7 million fine levied against the university” on related claims it misleads and deceives students.
"Given the major problems that exist in higher education . . . it is baffling that the federal government has chosen to target a Christian university that is addressing those issues in very positive ways," the university said in a statement.
FTC Bureau of Consumer Protection Director Samuel Levine said 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.”
GCE advertised on websites and social media urging prospective students to submit their contact information on digital forms, according to FTC filings. The commission claims GCE telemarketers used the information to illegally contact people who have specifically requested not to be called, as well as people on the National Do Not Call Registry, and alleges that GCE also made illegal calls to numbers it purchased from lead generators.
