FTC Announces $191 Million Settlement with For-Profit University

FTCOn December 10, 2019, the FTC announced a settlement with a major for-profit university and its parent company to resolve allegations that they deceived potential students in violation of the Federal Trade Commission Act (FTC Act), 15 U.S.C.§ 45.

According to the FTC, the defendants used advertisements to attract students that gave the false impression that major corporations partnered with the university and consulted on its curriculum to better prepare students, when in fact the corporations had no connection to the university. In addition, the FTC alleged that the advertisements targeted Hispanic and military consumers.

The settlement requires the for-profit university to pay a $50 million fine to the FTC and to cancel approximately $141 million in debts owed by former students who may have been exposed to the allegedly deceptive advertising.

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