By The Federal Trade Commission (FTC) has taken legal action against Grand Canyon Education Inc. (LOPE) for allegedly misleading potential students about program costs and falsely promoting the school as a nonprofit institution. Grand Canyon Education Inc., which works closely with Grand Canyon University in Phoenix, is accused of deceiving prospective doctoral students by misrepresenting the total cost of the university’s “accelerated” doctoral programs.
As a result of the lawsuit, the FTC is seeking measures to prevent future violations, as well as seeking financial compensation and other suitable remedies. At the time of this report, Grand Canyon University has not provided any comments on the matter. After hours, shares of Grand Canyon Education Inc. saw a slight increase of 0.5%.
Misleading Program Costs and Nonprofit Status
The FTC’s lawsuit against Grand Canyon Education Inc. and Grand Canyon University centers on their alleged deception regarding program costs and misrepresentation of being a nonprofit institution. The company is accused of misleading doctoral students by stating that the total cost is equivalent to only 20 courses. However, the reality is that additional “continuation courses” are mandatory, resulting in substantial additional expenses.
Unethical Marketing Tactics
FTC Seeks Preventive Measures, Compensation, and Relief
The Federal Trade Commission is not only pursuing legal action against Grand Canyon Education Inc., but also against Chief Executive Brian Mueller. The agency is demanding significant corrective actions to prevent future violations, and it is seeking financial compensation and other appropriate relief.
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