University Of Phoenix: Misleading Students With False Claims

The University of Phoenix has been accused of misleading students with deceptive advertising and false claims about post-graduation job opportunities. The university allegedly used misleading advertising campaigns that falsely gave potential students the impression that the school had partnered with companies including AT&T, Microsoft, Yahoo!, Twitter, and the American Red Cross in order to provide students with employment opportunities after graduation. The Federal Trade Commission (FTC) claimed that the ads featuring these employers could give potential students the impression that the school had connections with these employers, or tailored its education to make its students specifically attractive to those companies. However, the school was not affiliated with any of those employers, and did not tailor its curriculum to the requirements of those fields. The FTC settlement against the University of Phoenix was the largest settlement obtained from a lawsuit against a for-profit university at the time.

False advertising

The University of Phoenix has been accused of false advertising by the Federal Trade Commission (FTC) and the Department of Education. The FTC charged the university with running a misleading advertising campaign from 2012 to 2014, which falsely claimed that the school had partnerships with major companies like AT&T, Microsoft, Yahoo!, Twitter, and the American Red Cross. The university also allegedly misrepresented its relationships with employers, including Adobe, Avis, MGM, Newell Rubbermaid, and Sodexo.

The ads featured a University of Phoenix student driving past parking spots marked with the logos of these companies, giving the impression that the school had connections with these employers and tailored its curriculum to make its students attractive to them. However, the university was not affiliated with any of these employers, and it did not tailor its curriculum to meet their job requirements.

The Department of Education approved $37 million in loan forgiveness for University of Phoenix students who said they were misled by the 2012 ad campaign. The university agreed to pay $191 million to settle the false advertising lawsuit, including $141 million in student loan debt forgiveness for affected students.

Inflated graduation rates

The University of Phoenix has been accused of inflating its graduation rates and making false claims about post-graduation job opportunities for students. The university allegedly used misleading advertising campaigns that falsely gave potential students the impression that the school had partnered with companies including AT&T, Microsoft, Yahoo!, Twitter, and the American Red Cross to provide students with employment opportunities after graduation. The university may also have misrepresented its relationships with employers, including Adobe, Avis, MGM, Newell Rubbermaid, and Sodexo. The Federal Trade Commission (FTC) claimed that the ads featuring these employers could give potential students the impression that the school had connections with these employers or tailored its education to make its students specifically attractive to those companies. However, the school was not affiliated with any of those employers, and did not tailor its curriculum to the requirements of those fields.

The University of Phoenix has been criticised for its lack of academic rigor. In 2007, The New York Times reported that the school's graduation rate had plummeted and that educational quality had eroded. The university's "corporate articulation agreements" have also been criticised, as they provide an alternative assessment program for people working at other companies to earn college credit for training they have completed at their jobs. To qualify for college credit, students either write an "experiential essay" or create a professional training portfolio, the latter of which is a collection of documents such as transcripts from other schools, certificates, licenses, workshops, or seminars.

The University of Phoenix has been regionally accredited since 1978, but in May 2013, the university's accreditation status was placed on "notice" for a period of two years due to "insufficient autonomy relative to its parent corporation". In June 2015, the Higher Learning Commission determined that the University of Phoenix had resolved those concerns.

Misleading job placement rates

The University of Phoenix has been accused of misleading students with false advertising and deceptive marketing strategies. The university allegedly used misleading advertising campaigns that falsely gave potential students the impression that the school had partnered with companies including AT&T, Microsoft, Yahoo!, Twitter, and the American Red Cross in order to provide students with employment opportunities after graduation. The university may also have misrepresented its relationships with employers, including Adobe, Avis, MGM, Newell Rubbermaid, and Sodexo. The Federal Trade Commission (FTC) claimed that the ads featuring these employers could give potential students the impression that the school had connections with these employers, or tailored its education to make its students specifically attractive to those companies. However, the school was not affiliated with any of those employers, and did not tailor its curriculum to the requirements of those fields.

The University of Phoenix has agreed to pay $50 million in cash to the Federal Trade Commission and forgive more than $140 million in student loan debt owed by students who may have been harmed by the deceptive claims.

Misleading job opportunities

The University of Phoenix has faced criticism and legal action for misleading students with deceptive advertising and false claims about post-graduation job opportunities. The university's "Let's Get to Work" marketing campaign, which ran from 2012 to 2014, featured companies such as AT&T, Microsoft, Yahoo!, Twitter, and the American Red Cross, implying partnerships and employment opportunities for graduates. The Federal Trade Commission (FTC) alleged that these claims were misleading, as the university did not have special relationships with these companies or tailor its curriculum to their requirements.

The FTC's $191 million settlement with the University of Phoenix and its parent company, Apollo Education Group, addressed these deceptive employment claims. The settlement included $50 million in cash payments to former students and the cancellation of $141 million in debts owed directly to the school. The University of Phoenix denied any wrongdoing but agreed to the settlement terms.

The misleading advertising campaigns gave potential students the impression that the university had partnered with prominent companies to provide employment opportunities. Students who saw these ads may have falsely believed that graduating from the University of Phoenix would lead to job offers from these employers. This false belief may have influenced their decision to choose the university over other educational options.

The University of Phoenix's deceptive marketing campaigns were found to target vulnerable groups, including people of color, military veterans, and economically disadvantaged students. The FTC's efforts to protect consumers from deceptive advertising include enforcing regulations for truth in advertising and taking legal action when necessary.

The University of Phoenix case highlights the importance of providing accurate and transparent information to prospective students, especially regarding employment prospects and partnerships with companies. It also underscores the potential consequences of misleading advertising, including legal settlements and damage to the institution's reputation.

Misleading relationships with employers

The University of Phoenix was accused of misleading students about its relationships with employers. In 2019, the university was hit with a record-breaking $191 million lawsuit settlement by the U.S. Federal Trade Commission (FTC). The FTC claimed that the university had engaged in deceptive advertising strategies and made false claims about post-graduation job opportunities.

The University of Phoenix allegedly used misleading advertising campaigns that falsely gave potential students the impression that the school had partnered with companies including AT&T, Microsoft, Yahoo!, Twitter, and the American Red Cross. The university may also have misrepresented its relationships with employers such as Adobe, Avis, MGM, Newell Rubbermaid, and Sodexo.

The FTC claimed that the ads featuring these employers could give potential students the impression that the school had connections with these employers or tailored its education to make its students specifically attractive to those companies. However, the university was not affiliated with any of these employers, and it did not adapt its curriculum to the requirements of those fields.

The University of Phoenix's advertising campaign, called "Let's Get to Work," ran from 2012 to 2014. In one of these ads, the logos of various companies appeared on the screen while a voiceover said, "at University of Phoenix, we're working with a growing list of almost 2,000 corporate partners, companies like Microsoft, American Red Cross, and Adobe, to create options for you."

The FTC found that the University of Phoenix did not have partnerships with these companies and that it did not offer any exclusive help to students in getting hired. The FTC stated that these businesses were chosen purely to bring in more students and that the university could neither guarantee job placement nor claim that it had worked with the businesses on curriculum development.

As a result of the settlement, the University of Phoenix agreed to pay $50 million in cash to the FTC and forgive more than $140 million in student loan debt owed by affected students. The Department of Education also approved loan forgiveness for University of Phoenix students who were deceived by the school's job placement claims.

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