The University of Phoenix, Inc.
Also known as: UOP.
The FTC alleged that the University of Phoenix used deceptive advertisements falsely touting relationships and job opportunities with companies including AT&T, Yahoo, Microsoft, Twitter and the American Red Cross. It agreed to a record $191 million.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- In the Matter of The University of Phoenix, Inc. (FTC case 152-3231, settlement announced December 2019)
- Jurisdictions
- United States (federal)
Employers who were not partners
In December 2019 the FTC announced that the University of Phoenix and its parent company agreed to pay a record $191 million to resolve allegations that they used deceptive advertisements falsely touting their relationships and job opportunities with companies such as AT&T, Yahoo, Microsoft, Twitter and the American Red Cross.
The claim being sold was employability. For a prospective student weighing years of tuition and debt, an advertised pipeline into named employers is close to the whole value proposition.
The structure of the settlement
The order required $50 million in cash, and cancellation of $141 million in debts owed to the school by students harmed by the advertising. The debt cancellation is the larger half, and it goes directly to the people still carrying the cost.
In March 2021 the FTC sent payments totaling nearly $50 million to more than 147,000 students.
In late September 2023 the U.S. Department of Education announced it would forgive nearly $37 million in federal loans for more than 1,200 students affected by the school’s practices, based in part on the FTC’s 2019 case. That is a separate action by a separate agency, reached on the strength of the same findings.
What is not established
The only supplied document is a case page summary. It does not give the specific advertisements, the period they ran, or the number of students exposed to them, so none of that appears here. A settlement resolves allegations without any admission or finding of wrongdoing.
Sources
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- Enforcement action September 20, 2023
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First recorded September 20, 2023 · Last updated September 20, 2023