Grand Canyon University (GCU), the preeminent Christian institution in the United States, has been served with a lawsuit by the Federal Trade Commission (FTC). The lawsuit charges GCU of engaging in deceptive advertising and unlawful telemarketing practices. This legal proceeding signifies the second initiative taken against GCU in recent months by an agency operating under the Biden administration.
In a federal court complaint, the FTC alleges that GCU, Grand Canyon Education, Inc., its marketer, and its president and CEO, Brian Mueller, deceive prospective doctoral students regarding the duration of its accelerated program. Additionally, the university is charged with deceitfully promoting itself as a nonprofit organization and unlawfully telemarketing to prospective students who had declined to be contacted.
Samuel Levine, director of the FTC’s Bureau of Consumer Protection, stated, “By misrepresenting the number of courses and costs associated with doctoral degrees and passing off as a non-profit institution, Grand Canyon deceived students.” In addition to requesting that GCU compensate consumers for the alleged violations, the FTC seeks to impose a prohibition on the university’s future legal infractions.
The spokesperson for GCU failed to respond to requests for comment on the lawsuit at the earliest. However, in a previous statement to Fox News Digital, Brian Mueller expressed his belief that the Biden administration is unjustly singling out the university, characterizing it as a coordinated assault involving several federal agencies.
This lawsuit is a consequence of the Department of Education’s (DOE) October imposition of a substantial sanction on GCU. GCU was fined $37.7 million by the DOE on the grounds that, for several years, it misled more than 7,500 current and former students regarding the cost of its doctoral programs. The DOE asserted that GCU deceitfully advertised program costs at a reduced rate, resulting in approximately 98% of students paying the advertised amount.
The federal investigations have been associated by Mueller with the DOE’s 2018 denial of GCU’s application to become a nonprofit organization. GCU remains classified as a for-profit entity by the DOE in relation to federal student financial aid. Mueller declared his intention to file an appeal in light of the sanction imposed by the DOE, contending that GCU does not in any way mislead or deceive its students.
Ongoing apprehensions regarding advertising practices and transparency in higher education, specifically with regard to program costs and institutional standing, are brought to the forefront by the FTC’s lawsuit against GCU. As GCU prepares to contest the allegations and penalties levied by federal agencies, the case continues to develop.