University of Phoenix Settles Allegations of Deceptive Military Recruitment Tactics

The University of Phoenix has agreed to settle allegations that it used deceptive and unlawful tactics to recruit servicemembers and veterans, violating California consumer protection laws and directives issued by the Department of Defense. According to a complaint filed with the proposed stipulated judgment, Attorney General Bonta alleges that the university engaged in aggressive and misleading recruitment practices, targeting military personnel and their families.

The allegations stem from a period between 2012 and 2015, during which time for-profit schools like University of Phoenix drew scrutiny for using abusive tactics to recruit servicemembers and veterans. The university's parent company, Apollo Education Group, Inc, has also been named in the settlement.

As part of the settlement, the University of Phoenix must pay $4.5 million in penalties and other monetary relief, as well as comply with strong injunctive terms. The recruitment tactics used by the university violated California's Unfair Competition Law (UCL) and False Advertising Law (FAL).

The allegations are particularly noteworthy given recent changes to the Higher Education Act aimed at closing loopholes that allowed for-profit schools to prioritize recruiting servicemembers and veterans over other students. In 2021, Congress and the Biden administration amended the act to close the '90/10' loophole, which had allowed schools to enroll up to nine additional students whose tuition would be paid with federal student aid for every servicemember or veteran enrolled.

The University of Phoenix's tactics allegedly involved convincing service members to use their hard-earned education benefits at its institution instead of less expensive, high-quality options like California's public colleges and universities. This behavior is considered predatory and unfair, as it disproportionately affects those who have already made significant sacrifices for our country.

Attorney General Bonta has vowed to protect consumers, particularly those who have sacrificed so much to protect us. The settlement includes a provision to distribute part of the funds to military relief organizations that provide interest-free emergency loans, financial counseling, and other critical services and supports to military members and their families.

In a statement, Attorney General Bonta emphasized the importance of holding schools accountable for using predatory practices to recruit servicemembers and veterans. 'Today's settlement sends a strong message that schools who use deceptive and unlawful tactics will be held to account,' he said.

The University of Phoenix has agreed to reform its recruitment practices and ensure compliance with California laws and regulations. This settlement is a significant step towards protecting the interests of military personnel and their families, and holding institutions accountable for their actions.

University of phoenix jobs