Trade Commission Sues Grand Canyon University for Deceptive Advertising

The U.S. Federal Trade Commission has filed a lawsuit against Grand Canyon University for deceptive advertising, illegal telemarketing, and misrepresenting the school as a nonprofit institution, according to Reuters.

Grand Canyon University President Brian Mueller speaks during a Nov. 16 press conference regarding the university’s appeal to recent U.S. Department of Education decisions.GCU NewsThe FTC filed a complaint against Grand Canyon Education Inc. (GCE) and Grand Canyon University (GCU) in federal court. GCE CEO and GCU President Brian Mueller was included in the complaint accusing the entities of "deceiving prospective doctoral students about the cost and course requirements of its doctoral programs and about being a nonprofit, while also engaging in deceptive and abusive telemarketing practices," according to an FTC statement, claiming the respondent violated the FTC Act and the Telemarketing Sales Rule.

The commission voted 3-0 to authorize staff to file the complaint in U.S. District Court for the District of Arizona. FTC v. GCE, 2023 D. Ariz.

FTC alleges the university "has been operated for the profit of GCE and its stockholders and pays 60% of its revenue to GCE,” although GCE describes Grand Canyon as a "partner" in regulatory filings.

The Arizona-based university denied what it said were "unsubstantiated allegations" and said it would take all measures necessary to refute them.

In November, the university notified the U.S. Department of Education that it would appeal an “unprecedented and unjust $37.7 million fine levied against the university” on related claims it misleads and deceives students.