Wednesday, February 21, 2024

U.S. company sues Grand Canyon College alleging misleading promoting

The Federal Commerce Fee on Wednesday sued Grand Canyon College in federal court docket, alleging that the establishment, its dad or mum firm and its CEO deceived potential doctoral college students in regards to the worth and necessities of its packages and its tax standing.

“Grand Canyon deceived college students by holding itself out as a non-profit establishment and misrepresenting the prices and variety of programs required to earn doctoral levels,” Samuel Levine, director of the commerce fee’s Bureau of Shopper Safety, stated in a information launch about the lawsuit.

Grand Canyon and the Biden administration have been locked in a years-long battle over the Christian college’s tax standing, together with the college’s 2021 lawsuit difficult the Training Division’s rejection of its conversion to being a nonprofit establishment. Grand Canyon has been acknowledged as a nonprofit by the Inner Income Service, however it may well’t market itself that means till the Training Division approves the conversion. The college has asserted that the division, together with the FTC and the Division of Veterans Affairs have been coordinating their efforts to “unjustly goal GCU in what seems to be retaliation for the college submitting an ongoing lawsuit in opposition to ED concerning its nonprofit standing.”

Within the lawsuit, the FTC states that Grand Canyon College has “deceptively marketed the varsity as a nonprofit,” regardless that, the company alleges, it “has been operated for the revenue” of Grand Canyon Training, the for-profit firm that gives advertising and different providers to the college. The college pays 60 p.c of its income to Grand Canyon Training, and Brian Mueller, president of Grand Canyon College, can be CEO and a stockholder of Grand Canyon Training, the commerce fee’s lawsuit asserts.

The lawsuit additionally alleges that the college and the providers firm understated the price of finishing Grand Canyon’s “accelerated” doctoral packages; simply 2 p.c of doctoral program graduates full their program inside the fee that Grand Canyon advertises, the grievance alleges.

Grand Canyon couldn’t be reached instantly for touch upon the FTC lawsuit.

It is a creating story.

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