Inside the FTC’s lawsuit against Grand Canyon University
Higher Ed Dive
Natalie Schwartz
January 3, 2024
The federal agency has accused the university of misrepresenting itself as a nonprofit and misleading students about its doctoral program costs.
The Federal Trade Commission sued Grand Canyon University and its educational services provider last week, alleging that the institution deceived students about the cost of its doctoral programs and misrepresented itself as a nonprofit college.
Grand Canyon University has about 118,000 students, around three-quarters of whom are enrolled online. It agrees to pay 60% of its tuition and fee revenue to a company called Grand Canyon Education, or GCE, for services like marketing, recruitment and student counseling.
The FTC’s lawsuit targets both the university and company, alleging that Grand Canyon University operates “for the profit of GCE and its investors.” It accused the university of violating federal laws governing commerce and telemarketing.
The legal challenge ramps up federal scrutiny of the large Christian college, which was recently slapped with a $37.7 million fine from the U.S. Department of Education over similar allegations.
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