The Federal Trade Commission secured millions for students after allegations of the school using misleading advertising in its recruitment.
What We Know:
- The $191 million settlement between the FTC and the University of Phoenix (UOP) was reached in 2019. As part of the deal, students at the online university will receive $50 million in direct payments. The rest of the money will go towards canceling students’ unpaid balances owed to the school, says an FTC press release.
- The UOP was accused of using false advertising; the school claimed it had relationships with companies like Microsoft, AT&T, and Twitter, and used those relationships to shape students’ curriculum. But, the FTC determined that the university had no such relationships at all. The ads gave students the false notion the UOP would help them get jobs with those companies.
- Andrew Smith, Director of the FTC’s Bureau of Consumer Protection remarked on the settlement saying, “students making important decisions about their education need the facts, not fantasy job opportunities that do not exist.”
- According to NBC, the UOP and its parent company Apollo Education Group allegedly targeted potential Hispanic and military students. The UOP is the biggest recipient of the 9/11 GI Bill benefits, which covers the cost of tuition for veterans and their dependents.
While the university has not acknowledged wrongdoing in the settlement, a spokesperson noted the agreement will allow the school to continue its goal of improving the lives of its students.
