University of Phoenix Settles Investigation into Aggressive Military Student Recruitment Tactics

The University of Phoenix has agreed to settle an investigation by California's Attorney General into allegations of aggressive and unlawful recruitment tactics targeting military students from 2012 to 2015. The settlement, which includes a $4.5 million penalty and other monetary relief, is seen as a victory for consumer protection in the state.

According to Attorney General Rob Bonta, the University of Phoenix used deceptive and unlawful tactics to convince service members to use their education benefits at its institution, rather than exploring less expensive and high-quality options such as California's public colleges and universities. The recruitment practices violated California's Unfair Competition Law (UCL) and False Advertising Law (FAL).

Under the terms of the settlement, the University of Phoenix must cancel unpaid balances owed by eligible students and pay nearly $50 million in direct payments to over 147,000 students who were affected by the university's aggressive recruitment tactics. The total settlement amount is $191 million.

The investigation, which was launched by the Federal Trade Commission (FTC), found that the University of Phoenix had engaged in a campaign targeting prospective Hispanic and military students, including veterans and their dependents. The FTC alleged that the university used misleading marketing materials and false promises to lure students into enrolling at its institution.

In response to the allegations, Apollo Education Group, the parent company of the University of Phoenix, claimed that its recruitment practices were not tested through litigation and did not constitute factual findings by either the FTC or any court. However, the settlement agreement has enabled the university to continue focusing on its core mission of improving the lives of its students through career-relevant higher education.

The settlement is seen as a significant victory for consumer protection in California, as it holds the University of Phoenix accountable for its aggressive recruitment tactics and ensures that military students are protected from predatory practices. As Attorney General Bonta stated, 'Today's settlement sends a strong message that schools who use predatory practices to recruit servicemembers and veterans will be held to account.

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