In a recent development, the U.S. Federal Trade Commission (FTC) has launched legal action against Grand Canyon University, accusing the institution of deceptive advertising, illegal telemarketing, and falsely presenting itself as a nonprofit organization.
The regulatory body, in its complaint filed with the U.S. District Court for the District of Arizona, singles out Grand Canyon Education Inc (GCE), its CEO, and the university for misleading prospective doctoral students regarding program costs and requirements. The FTC contends that the university, despite claiming nonprofit status, operates for the profit of GCE and its stockholders, diverting 60% of its revenue to the parent company.
Unveiling the allegations, the FTC statement points to a pattern of deceitful practices, including the misrepresentation of the university’s nature and engaging in abusive telemarketing. The legal action stems from concerns about the university’s purported partnership with GCE, a characterization disputed by the regulatory body.
Grand Canyon University, headquartered in Arizona, is yet to respond to requests for comment on the lawsuit.
This legal move comes on the heels of a substantial $37.7 million fine imposed on the university by the U.S. Education Department for distorting the actual costs of its doctoral programs. According to CNBC, less than 2% of the graduates from the school’s doctoral programs completed their studies within the advertised cost, with nearly 78% of these students necessitating five or more continuation courses.
As the regulatory scrutiny intensifies, Grand Canyon University finds itself entangled in legal challenges and financial penalties, raising questions about the integrity of its representation and operations.
Reporting by Caitlin Webber in Washington and Ismail Shakil in Ottawa; Editing by Dan Whitcomb and Matthew Lewis
