FTC Dismisses Lawsuit Against Grand Canyon University
Last week, the Federal Trade Commission (FTC), under President Donald Trump, voted unanimously to end a lawsuit initiated during the Biden administration against Grand Canyon University, the largest Christian university in the U.S.
In 2023, the Biden-era FTC had accused the university, located in Phoenix, Arizona, of “deceptive advertising and illegal telemarketing.” The Department of Education had been involved, claiming that GCU misled prospective students about the costs associated with its doctoral programs, resulting in a hefty fine of $37.7 million.
In their statement, the FTC referenced the resources consumed by what they deemed a “lost cause.” They also noted that GCU had allegedly claimed non-profit status unfairly and utilized aggressive telemarketing tactics to increase enrollment.
Throughout the proceedings, GCU firmly denied all allegations made by the FTC.
On Friday, the Trump-led FTC voted 3-0 to dismiss the complaint, sharing in a joint statement that the lawsuit, passed down from the previous administration, had faced multiple hurdles and had recently been worsened by unfavorable developments. Notably, before the dismissal, GCU had experienced a legal victory concerning nonprofit designation in events prior to the dismissal.
The committee stated that pursuing the lawsuit would yield minimal benefits relative to its costs. They emphasized that it was crucial to prioritize taxpayer interests and resources efficiently.
In a press release, GCU welcomed the FTC’s decision, suggesting it served to “fully exonerate” the university after years of what they claimed was politically charged legal action. A representative from GCU remarked that the accusations were erroneous and pointed to a broader ideological agenda rather than genuine concern for students.
Despite facing intense scrutiny for four years, GCU asserted it not only survived but also continued to flourish, attributing this resilience to the dedication of its community.
The FTC opted not to provide further comments following their decision.
