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ARTICLE · 09 FEBRUARY 2017

FTC And DeVry University Settle False Advertising Claims For $100M

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In December 2016, DeVry University agreed to pay $100 million to settle a lawsuit with the Federal Trade Commission (FTC) over allegations stemming from DeVry's advertising about the employment rates and salaries of its graduates.

United StatesMedia, Telecoms, IT, Entertainment
Alexander Kaplan
Alexander Kaplan
Russell Kostelak
Russell Kostelak
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In December 2016, DeVry University agreed to pay $100 million to settle a lawsuit with the Federal Trade Commission (FTC) over allegations stemming from DeVry's advertising about the employment rates and salaries of its graduates. According to the FTC press release announcing the settlement in FTC v. DeVry Educ. Group in the district court for the Central District of California, DeVry will pay $49.4 million in cash to be distributed to students and $50.6 million towards debt relief programs to cover unpaid student loans and debts.

This dispute began in January 2015 when the FTC filed a lawsuit  in California federal court in Los Angeles against DeVry, alleging two areas of allegedly deceptive advertising. First, the FTC took issue with DeVry's claim that 90% of all DeVry graduates who were actively seeking employment obtained jobs in their field of study within six months of graduation.  The FTC alleged that DeVry did not have a reasonable basis to support this claim

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