“Grand Canyon University Faces Lawsuit for Allegedly Misleading Students about Doctoral Program Costs,” reads the headline of an article published by the McCreary County Record. The Federal Trade Commission (FTC) has filed a lawsuit against Grand Canyon University (GCU), its education company, and GCU CEO Brian Mueller, accusing them of engaging in deceptive practices and misleading students about the cost of their doctoral programs.
According to the FTC, GCU falsely advertised the total cost of its “accelerated” doctoral programs by failing to disclose the additional cost of “continuation courses” that most doctoral students are required to take. The lawsuit also alleges that GCU falsely presented itself as a nonprofit institution, despite its education company and investors profiting from the university.
Brian Mueller, the CEO of GCU and a stockholder of the education company, is accused of benefiting financially from these deceptive practices. The FTC points to a report that reveals fewer than 2% of GCU doctoral graduates complete the program within the advertised cost, with nearly 78% of students taking five or more continuation courses.
In response to the allegations, GCU has denied all claims and plans to dispute them. The university argues that the Biden administration is unjustly targeting them for ideological reasons. GCU cites a court case that rejected similar claims of misleading program cost disclosures and highlights that revenue share agreements and Mueller’s dual role are common in higher education.
In addition to misleading students about program costs, the FTC also accuses GCU of using abusive telemarketing calls, in violation of the FTC Act and the Telemarketing Sales Rule.
This is not the first time GCU has faced legal trouble regarding misleading program costs. The Department of Education has already imposed a $37.7 million fine on the university for similar allegations, which GCU plans to appeal.
Brian Mueller, the CEO of GCU, has criticized the federal government’s efforts to target his university and has called on others to fight against what he perceives as government overreach and ideological bias.
As the legal battle between the FTC and GCU unfolds, students and educational institutions alike will be closely watching the outcome, hoping for more transparency and accountability in the higher education sector.
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