News & Analysis as of

Unfair or Deceptive Trade Practices Educational Institutions

Saul Ewing LLP

CFPB Finds For-Profit Coding School Misrepresented Nature of Its Lending Products and Job Placement Rates

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The Consumer Financial Protection Bureau continues to expand its presence into different businesses, including for-profit colleges. On April 17, 2024, the CFPB issued a consent order against a for-profit college for computer...more

Ballard Spahr LLP

CFPB Takes Action Against BloomTech, Inc. for ISAs that Violate TILA, UDAAP, and the FTC’s Holder Rule

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On April 17th, the CFPB issued a consent order to a for-profit training school alleging numerous violations of law related to its use if income share agreements (“ISAs”). According to the Bureau, BloomTech, Inc. (“BloomTech”)...more

Troutman Pepper

California AG Bonta Upholds $21M Penalty Against Ashford University Over GI Bill Errors

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In a recent ruling, the California Court of Appeal largely affirmed a lower court’s decision from March 2022, finding that Ashford University (now known as University of Arizona Global Campus), an online, for-profit college,...more

Spilman Thomas & Battle, PLLC

Unprecedented: COVID-19 Litigation Insights, Volume 3, Issue 2

Syracuse University Hit with Another Class Action Lawsuit Over Pandemic Refund Policy - "She is looking to represent an estimated tens of thousands of students who paid for tuition in the spring semester of 2020." Why...more

Carlton Fields

Third Circuit Compels Arbitration Finding that Failure to Carefully Read Arbitration Agreement Does Not Vitiate Assent

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Plaintiff entered into an agreement with Kaplan University (Kaplan) as part of registration for online courses through the university’s website portal. ...more

Ballard Spahr LLP

FTC and Veterans Affairs announce MOA on referrals for deceptive advertising, sales or enrollment practices targeting veterans...

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At the end of last week, the Federal Trade Commission (FTC) and the Department of Veterans Affairs (VA) announced that they have entered into a Memorandum of Agreement (MOA) “to provide mutual assistance in the oversight and...more

Ballard Spahr LLP

FTC settles Section 5 claims against company promoting schools to military servicemembers

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The FTC has entered a proposed consent order with Victory Media, Inc. (VMI) to settle the FTC’s charges that VMI violated Section 5 of the FTC Act by engaging in deceptive acts or practices in connection with its promotion of...more

Ballard Spahr LLP

D.C. Circuit hears oral argument on CFPB authority to issue CID to college accrediting organization

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Last week, the D. C. Circuit held oral argument in the CFPB’s appeal from the D.C. federal district court’s April 2016 ruling that the CFPB exceeded its statutory authority when it issued a CID to the Accrediting Council for...more

Robinson+Cole Data Privacy + Security Insider

Top Ten Education Developments, Breaches, and Settlements of 2016

This year has been a busy year for education law in the area of data privacy. Educational institutions continue to be a rich target for hackers. Additionally, there were some important developments in the interpretation of...more

Robinson+Cole Data Privacy + Security Insider

DeVry University Settles with FTC for a Whopping $100 Million

The Federal Trade Commission announced this week that it has settled with DeVry (DeVry) for $100 million over allegations that it misled prospective students with ads that promised higher employment success and income upon...more

Carlton Fields

Applying Kentucky Law, Sixth Circuit Finds Continued Employment Constitutes Assent To Arbitration Agreement

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During the time Plaintiffs Aldrich and Nolan worked as recruiters for the University of Phoenix, they allegedly signed an electronic form acknowledging their understanding of updated terms to the employee handbook. The...more

Ballard Spahr LLP

CFPB enters into consent order with for-profit college owner

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The CFPB announced that it has entered into a consent order with Bridgepoint Education, Inc., the owner of two for-profit colleges, to settle charges that the company’s representatives engaged in deceptive acts or practices...more

Robinson+Cole Data Privacy + Security Insider

FTC files suit against Devry University for deceptive advertisement from data

The FTC filed suit against Devry University on January 27th, alleging that its ads, stating that 90 percent of its graduates obtained jobs in their field of study, and were making 15 percent more than graduates from other...more

Ballard Spahr LLP

FTC and VA enter into agreement for investigating educational institutions

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The Federal Trade Commission and the Department of Veterans Affairs have signed a “Memorandum of Agreement” (MOA) “to provide mutual assistance in the oversight and enforcement of laws pertaining to advertising, sales, and...more

Ballard Spahr LLP

Director Cordray defends CFPB authority to investigate college accrediting organization

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Director Cordray is reported to have defended the CFPB’s authority to investigate a college accrediting organization at a recent Politico event. On October 8, 2015, the CFPB issued a decision and order denying the petition of...more

Ballard Spahr LLP

Beating a dead horse: CFPB announces default judgment against Corinthian

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The CFPB announced that it has obtained a final default judgment against Corinthian Colleges, Inc. from the Illinois federal court in which it sued Corinthian in September 2014. In May 2015, Corinthian filed a petition under...more

Ballard Spahr LLP

CFPB files enforcement action against for-profit education company over alleged predatory lending tactics

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After hinting for months that it intends to use its enforcement powers to police lending in the higher education arena, the CFPB dropped the hammer on ITT Educational Services, filing suit against the for-profit college over...more

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