President Donald Trump’s Federal Trade Commission voted unanimously last week to drop a Biden-era lawsuit against the nation’s largest Christian university.
In 2023, the FTC, under former President Joe Biden, accused Grand Canyon University in Phoenix, Arizona, of “deceptive advertising and illegal telemarketing.” The administration’s Department of Education fined GCU $37.7 million, claiming that it was deceiving students about the cost of its doctoral programs to entice more to enroll.
‘We view it as imprudent to continue expending Commission resources on a lost cause.’
The FTC further accused GCU of incorrectly claiming a nonprofit status and using “abusive telemarketing calls to try to boost enrollment.”
GCU rejected all of the FTC’s allegations.
On Friday, Trump’s FTC voted 3-0 to dismiss the complaint.
A joint statement from the commission read, “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a victory over the Department of Education in a related matter before the Ninth Circuit; the Department of Education rescinded a massive fine levied on related grounds; and the Internal Revenue Service confirmed that Grand Canyon University is properly claiming 501(c)(3) non-profit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.”
The commission concluded that pursuing the case presented “very little upside relative to the cost.”
“We view it as imprudent to continue expending Commission resources on a lost cause. Because we have a duty to maximize consumers’ return on their tax dollars investment, we have decided against pursuing this matter any further,” the joint statement added.
The school stated in a press release that the FTC’s recent decision to drop the case “fully exonerates GCU after years of politically motivated lawfare.”
Mueller said, “As we have stated from the beginning, not only were these accusations false, but the opposite is true.” He claimed that the Biden-era FTC lawsuit was not about protecting students but pointed to “a broader ideological agenda.”
“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,” he stated. “That is a testament, first and foremost, to the strength and dedication of our faculty, staff, students, and their families. Above all, it speaks to our unwavering belief that the truth would ultimately prevail.”
The FTC declined to comment.
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