The Federal Trade Commission unanimously voted to dismiss its complaint against Grand Canyon University, citing legal challenges and the impracticality of continuing the case. The FTC's allegations included GCU deceiving students about its nonprofit status and marketing practices. The decision follows earlier rulings, including the rescinding of a $37.7 million fine by the Education Department and a court ruling favoring GCU's nonprofit status. Commissioners noted the limited benefits of pursuing the case further, considering the agency's resources and its previous setbacks against GCU.
Commissioners Andrew N. Ferguson, Melissa Holyoak and Mark R. Meador said in a statement, "This case, which we inherited from the previous administration, was filed nearly two years ago and has suffered losses in two motions to dismiss." They cited GCU's "victory" over the Department of Education in its bid for nonprofit status, the department rescinding the $37.7 million fine and the Internal Revenue Service confirming GCU's nonprofit designation.
We view it as imprudent to continue expending Commission resources on a lost cause. The case, in its reduced form, presents consumers very little upside relative to the cost of pursuing it to completion.
Mueller said, "As we have stated from the beginning, not only were these accusations false, but the opposite is true." He added, "We go above and beyond what is required in our disclosures and are recognized as a leader in this area."
The FTC voted unanimously to dismiss its complaint against Grand Canyon University and its president, citing the lack of consumer benefits and the impracticality of pursuing the case further.
#federal-trade-commission #grand-canyon-university #nonprofit-status #education-department #legal-challenges
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