FTC Sues Grand Canyon Education for Deceptive Practices and False Program Costs


  • The U.S.’s Federal Trade Commission (FTC) has filed a lawsuit against Grand Canyon Education (NASDAQ:), so-called GCE.
  • GCE, alongside its CEO and university, is charged with misleading prospective doctoral students concerning the cost and program requirements of the university’s doctoral courses.
  • The FTC alleges that the promised non-profit narrative of the university is false, claiming that 60% of its earnings go to GCE and its shareholders.
  • This follows a massive $37.7 million penalty that the U.S. Education Department inflicted on the university for misrepresenting the costs of its doctoral programs, according to CNBC.

Details about the Complaint

GCE has been subject to a legal complaint by the FTC. The complaint was lodged in the U.S. District Court, District of Arizona. The charges are against GCE, its CEO, and the affiliated university.

Allegations related to Misleading Practices

The FTC’s charge against them involves allegations around “duping potential doctoral students concerning the cost and course stipulations of its doctoral programs and falsely claiming to be a nonprofit, all while exercising deceptive and abusive telemarketing behavior,” as stated in an official declaration.

Operated for Profit Allegedly

The FTC alleges that GCE and its shareholders profit from the university’s operation, with 60% of its revenues going to GCE.

Relationship between GCE and University

In regulatory files, GCE portrayed the university as a “partner.”

When asked for comment, the institution situated in Arizona did not promptly reply.

Previous Fine

The lawsuit trails after a hefty fine of $37.7 million set by the U.S. Education Department on the university for misguiding about the costs linked to its doctoral programs, as per CNBC reports.

Doctoral Program Statistics

The U.S. Education Department’s data indicates that less than 2% of the university’s doctoral program students finished their course within the promised cost. Ironically, nearly 78% of these learners enrolled for five or more extra courses.

Shifts in the stock valuation of Grand Canyon Education (NASDAQ:) could be seen in the forex market due to these allegations and subsequent legal battle. It might affect traders investing in GCE or related assets.

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