TARGETED

University of Phoenix to Pay $191 Million Settlement Over ‘Deceptive Ads’

The school falsely claimed it had close ties with major U.S. companies who might hire students—including Microsoft, Twitter, Yahoo!, and AT&T—the Federal Trade Commission said.

The University of Phoenix and its parent company, Apollo Education Group, on Tuesday agreed to pay out a $191 million settlement over charges that it used deceptive advertising, which falsely claimed the school had close ties with major U.S. companies who might hire students, according to the Federal Trade Commission. In targeted advertisements to military veterans and Hispanic students, the school reportedly claimed it had relationships with Microsoft, Twitter, Yahoo!, The American Red Cross, and AT&T that could lead to jobs for students. It will pay out $50 million for the commission to return to consumers and cancel an additional $141 million in student debt. “This is the largest settlement the Commission has obtained in a case against a for-profit school,” said Andrew Smith, director of the commission’s Bureau of Consumer Protection. “Students making important decisions about their education need the facts, not fantasy job opportunities that do not exist.”