FTC Sues Grand Canyon Education for Misleading Non-Profit Claims

By Ben Glickman

The Federal Trade Commission is suing Grand Canyon Education over claims it misrepresented itself as a non-profit.

The FTC alleged in a complaint filed Wednesday that the company, operating as a for-profit institution, misrepresented itself in advertising and marketing. The compliant also alleges the company misled consumers with the marketing of its doctoral programs and violated telemarketing rules.

The FTC suit also lists Grand Canyon University, the school operated by GCE, and Brian Mueller, GCE's chief executive, as defendants.

The FTC is seeking a permanent injunction against the defendants, as well as monetary relief for consumers.

The suit follows a U.S. Department of Education order against Grand Canyon University in November, alleging the school made misleading claims about its doctoral programs. The Education Department fined the school $37.7 million.

Grand Canyon University said at the time that it denies all accusations made by the Education Department.

Representatives from Grand Canyon Education and Grand Canyon University couldn't immediately be reached for comment.

The FTC's complaint filed Wednesday alleges the defendants also made phone calls to people who requested not to be contacted and called people listed on the National Do Not Call Registry.

Write to Ben Glickman at [e-mail]

(END) Dow Jones Newswires

December 27, 2023 16:23 ET (21:23 GMT)

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