In a startling update, the Federal Trade Commission (FTC) announced legal action against Grand Canyon University (GCU). In what feels like déjà vu, GCU is the second university that the Biden administration has targeted in recent months. GCU claims it's a joint onslaught by multiple federal agencies.
GCU, Deceptive Tactics, and Violations
The lawsuit filed by FTC aims at GCU, its marketer, Grand Canyon Education, Inc., and Brian Mueller, its CEO. FTC alleges deceptive advertising and illegal telemarketing by the defendants. The complaint filed unfolds a tale of lies and deceit. It states that GCU misrepresented its accelerated doctoral program's duration. The school also falsely claimed a non-profit status. Additionally, it illegally contacted prospective students who asked to be left alone.
FTC's Bureau of Consumer Protection Director Samuel Levine's words rang clearly. GCU, per Levine, deceived students. It falsely projected itself as a non-profit entity and misrepresented doctoral degree costs. Levine reiterates FTC's resolve to pursue heartlessly those preying on students.
The lawsuit accuses GCU of flouting the FTC Act and the Telemarketing Sale Rules. FTC requests the U.S. District Court in Arizona to force GCU to compensate consumers for these violations. It also demands that the university must stop these illegalities.
Clash of Opinions: GCU vs. FTC and DOE
While GCU was not immediately available for a response on the lawsuit, its CEO, Mueller, is of a firm view. He alleged in late October that GCU had ended up as an unjust target for the Biden administration. Multiple federal agencies, he claimed, have aligned themselves against the school.
Adding fuel to the fire was an event from October 31 when the Department of Education (DOE) slapped GCU with a fine worth $37.7 million. DOE's investigation revealed that the university lied to over 7,500 present and former students about the costs of their doctoral programs.
According to Mueller, the federal investigations are linked to DOE rejecting GCU's 2018 request to transition into a non-profit institution. DOE refused said status for GCU for federal student financial aid purposes, continuing to categorize it as a for-profit entity.
At a press conference last month, Mueller, with a defiant spirit, pledged to appeal against DOE's fine - the heftiest ever imposed by the agency. He refuted any allegations of the school misleading or deceiving its students. Interestingly, DOE's press statement accused GCU of falsely advertising a lower cost for its doctoral programs. It revealed that nearly 98% of students ended up paying more than what was advertised.
The Imperative of Legal Assistance
The GCU saga underlines the importance of legal aid. Laws can be a tricky, thorny terrain. The aftermath can be catastrophic. Students and parents must arm themselves with sound legal advice. The silver lining for those entangled in similar predicaments is a well-informed legal advisor. Don't bottle up. Reach out right away.
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