In a recent statement, Grand Canyon University (GCU) President Brian Mueller vehemently refuted the allegations made by the Federal Trade Commission (FTC) in a lawsuit against the school, its marketer Grand Canyon Education, Inc. (GCE), and Mueller personally. The FTC claims that the defendants deceptively marketed the school as a nonprofit, misled prospective students about costs, and engaged in illegal telemarketing.
Mueller described the FTC’s claims as “the height of absurdity” and argued that they are part of a coordinated and targeted effort by the federal government to harm the institution. He emphasized that GCU, the largest Christian university in the U.S., had transitioned to become a nonprofit in 2018 with the approval of the IRS, the State of Arizona, and the Higher Learning Commission. Mueller stated that it was only natural for the school to identify itself as a nonprofit during an 18-month window following the transition.
The GCU president further criticized the U.S. Department of Education for refusing to recognize GCU’s nonprofit status for the purposes of Title IV funding, despite the previous approval. Mueller asserted that the demand for GCU to not identify itself as a nonprofit institution was based on unsupported speculation and disagreed with the opinion. However, the school cooperated as a good faith gesture.
Mueller also denied the FTC’s allegations of “abusive marketing calls” by GCE to prospective students. He clarified that GCE only reached out to individuals who had expressed interest in attending the university or inquired about its programs, a common practice among higher education institutions. Mueller expressed concern that GCU was being unfairly singled out by the FTC in a clear example of selective enforcement.
The GCU president highlighted that other FTC allegations, such as doctoral disclosures and the university’s relationship with its service provider, were the same baseless claims previously made by the Department of Education. In October, the Department fined GCU $37.7 million after an investigation found that the school had provided misleading information about the cost of its doctoral programs to over 7,500 students.
Mueller concluded by criticizing the lack of checks and balances to prevent such government overreach and expressed his disappointment in the coordination between the FTC and the Department of Education. He suggested that the FTC’s real goal was to burden GCU with duplicative lawsuits.
The FTC lawsuit against Grand Canyon University has raised concerns about government interference and its potential impact on the institution. Critics argue that the allegations made by the FTC are unfounded and part of a broader campaign against conservative-leaning organizations. As the legal battle unfolds, the outcome could have significant implications for the future of GCU and its standing as a nonprofit institution.
