For-Profit Chain Reaches $30 Million Settlement With FTC
Career Education Corporation reached a $30 million settlement agreement with the Federal Trade Commission last month, it disclosed in a filing to the Securities and Exchange Commission.
The FTC launched an inquiry into the company’s practices in 2015 focused on deceptive marketing and advertising to prospective students. Career Education admitted no wrongdoing in the settlement but did agree to enhance compliance measures involving student leads purchased from third-party firms.
The company announced another settlement in January with attorneys general from 48 states and the District of Columbia involving “unfair and deceptive practices.” Although Career Education also denied wrongdoing in that deal, it agreed to write off $556 million in debt owed by 180,000 former students.
Diane Auer Jones, the Education Department’s principal deputy under secretary, was a former executive at Career Education. In a June New York Times article, Jones said that she reported improprieties at the company to the department and Career Education’s accreditor.
