The FTC obtained a Record $191 Million Settlement from University of Phoenix, to resolve FTC charges that it used deceptive advertising to attract prospective students.
This settlement requires UOP to pay $50 million to the FTC-which will be used for consumer redress, and to cancel approximately $141 million in debts owed to UOP by former students who first enrolled during the time period consumers were likely exposed to UOP’s deceptive advertising.
Settlement provides a mix of cash and debt cancellation to students harmed by deceptive ads
The University of Phoenix (UOP) and its parent company, Apollo Education Group, will settle for a record $191 million to resolve Federal Trade Commission charges that they used deceptive advertisements that falsely touted their relationships and job opportunities with companies such as AT&T, Yahoo!, Microsoft, Twitter, and The American Red Cross.
Under the settlement unanimously approved by the Commission, UOP will pay $50 million in cash as well as cancel $141 million in debts owed to the school by students who were harmed by the deceptive ads. "This is the largest settlement the Commission has obtained in a case against a for-profit school,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “Students making important decisions about their education need the facts, not fantasy job opportunities that do not exist." The settlement provides a mix of cash and debt cancellation to students harmed by deceptive advertising.-FTC
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