The Federal Trade Commission (FTC) has initiated legal action against Grand Canyon University (GCU), marking the second regulatory agency under the Biden administration to take action against the largest Christian school in the United States in recent months. GCU asserts that this is part of a coordinated attack by multiple agencies targeting the institution.
The FTC, in a press release, announced the filing of a lawsuit in federal court against GCU, its marketer Grand Canyon Education, Inc., and its president and CEO Brian Mueller. The lawsuit alleges that the defendants engaged in deceptive advertising and illegal telemarketing practices.
According to the complaint, the Arizona-based school allegedly misled prospective doctoral students regarding the duration of its accelerated program, falsely portrayed itself as a nonprofit entity, and unlawfully contacted individuals who had submitted their contact information on the school’s website with a request not to be contacted. The Federal Trade
The FTC’s director of the Bureau of Consumer Protection, Samuel Levine, stated, “Grand Canyon deceived students by holding itself out as a non-profit institution and misrepresenting the costs and number of courses required to earn doctoral degrees.” The complaint accuses GCU of violating the FTC Act and the Telemarketing Sale Rules. The FTC is seeking compensation for consumers affected by the alleged violations and requesting the U.S. District Court in Arizona to prohibit the university from further violations of the law.
A spokesperson for GCU did not immediately respond to FOX Business’ request for comment on the lawsuit, but Mueller told Fox News Digital in late October that he believes the university is unfairly being targeted by the Biden administration, saying multiple federal agencies were involved in a coordinated attack against the school.
Shortly after that, on Oct. 31, the Department of Education (DOE) fined GCU $37.7 million, saying an investigation conducted by the office of Federal Student Aid found the university “lied” to over 7,500 former and current students about the cost of its doctoral programs over several years.
The DOE said in a press release that GCU “falsely advertised” a lower cost for its doctoral programs, adding that about 98% of students ended up paying more than the advertised cost.