The Federal Trade Commission announced Wednesday that nearly million 50 million is being sent to students at a former University of Phoenix after the school settled allegations of misleading advertising.
The payments are part of a record $ 191 million settlement reached in late 2019, the FTC said, alleging the school ran ads that falsely claimed to be like its AT&T, Yahoo !, Micro .ft and Twitter. Has relationships with companies, the FTC said.
The ads claimed that the University of Phoenix could benefit from its relationships with large corporations to create job opportunities and shape the curriculum so that students could find the best place for such a job. But there is no such relationship at school, the FTC said.
“This is the biggest settlement the commission has reached in a case against a for-profit school,” said Rewandrew Smith, director of the FTC’s Bureau of Consumer Protection. “Students who make important decisions about their education need facts, not imaginary job opportunities. It does not exist. “
An advertisement from a university in Phoenix showed a woman trying to find a parking space in the perfect space.
“Like many things, trying to find a better job can be frustrating. So at the University of Phoenix, we’re working to build a developed list of about 2,000 corporate partners – companies like MicroS, FT, American Red Cross and Adobe. You,” he said. Said voice over.
Avis, Twitter, MGM Resorts, AT&T and Micro .ft along with the company lift the car of various places to show the company logo.
The ad continues, “Not only that, we are using what we have learned from these partners to shape these courses, so that when you get the job you want, you become the perfect fit.”
The FTC alleges that UOP and its parent company, Apollo Education Group, specifically targeted potential Hispanic and military students. According to the FTC, Apollo Education Group has been the largest recipient of post-9/11 GI bill benefits, paying tuition and fees on behalf of P te or their dependents, according to the FTC.
In a statement to NBC News, a University of Phoenix spokeswoman said the FTC’s allegations were “a campaign that ended in 2014 that was not tested by lawsuits, and no factual findings were formed by the FTC or any court.”
The statement said that the university has not admitted any malpractice and continues to believe that it has taken appropriate action. “This settlement agreement enables us to continue to focus on our core goal of improving the lives of our students through career-related higher education and to avoid any further disruption in serving students who may face lengthy litigation.”
In addition to about $ 50 million in direct payments to more than 147,000 students, the 19 191 million settlement includes 1 141 million in cancellation of outstanding payments made directly by eligible students to the school.
For Million 50 Million, FTC is mailing 146,804 checks and paying 677 PayPal payments to students who: U.O.P. Reported between October 15, 2012 and December 31, 2016; Paid more than $ 5,000 with cash, grants, federal and private student loans or military benefits; The debt has not been canceled as part of the settlement; And did not dislike the UOP giving student contact information to the FTC.
