The Federal Trade Commission (FTC) has unanimously voted to drop its lawsuit against Grand Canyon University (GCU), its marketing partner Grand Canyon Education, Inc., and university president Brian Mueller.
The decision ends a nearly two-year legal battle that began under the Biden administration, when the FTC alleged deceptive advertising and illegal telemarketing by the Arizona-based Christian university.
Background on the Allegations
The 2023 lawsuit accused GCU of:
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Misleading doctoral students about the length of its accelerated program.
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Marketing itself deceptively as a nonprofit institution.
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Making illegal telemarketing calls to prospective students who requested not to be contacted.
The Department of Education had also denied GCU’s nonprofit status — despite recognition from the Arizona Board for Private Postsecondary Education, the IRS, the State of Arizona, and the Higher Learning Commission.
FTC Chairman Explains Decision
FTC Chairman Andrew Ferguson acknowledged the agency’s repeated setbacks in court:
“This case, which we inherited from the previous administration, was filed nearly two years ago and has suffered losses in two motions to dismiss. These losses are compounded by recent events: Grand Canyon secured a victory over the Department of Education in a related matter before the Ninth Circuit; the Department of Education rescinded a massive fine levied on related grounds; and the Internal Revenue Service confirmed that Grand Canyon University is properly claiming 501(c)(3) non-profit corporation designation.”
University Response
GCU President Brian Mueller said the outcome validated the university’s defense against what he described as a coordinated political attack:
“They threw everything they had at us for four years, and yet, despite every unjust accusation leveled against us, we have not only survived but have continued to thrive as a university.”
Mueller said the FTC dismissal, along with recent legal wins, proves the allegations were baseless:
“As we have stated from the beginning, not only were these accusations false, but the opposite is true. We go above and beyond what is required in our disclosures and are recognized as a leader in this area.”
Broader Context
The FTC’s reversal comes just months after the Department of Education revoked a $37.7 million fine against GCU for alleged deceptive practices.
Mueller has long maintained that GCU was targeted because it is the largest Christian university in the United States, with more than 100,000 students enrolled across on-campus and online programs.
