College Company To Pay FTC $30M Over Deceptive Marketing

Law360 (August 27, 2019, 7:26 PM EDT) -- A for-profit higher education company has agreed to pay $30 million to settle a lawsuit over deceptive marketing, the Federal Trade Commission announced Tuesday, marking the first time the agency has held an education company liable for the tactics of third-party “lead generators.”

Career Education Corp. bought contact information from more than 70 lead generators, some of which posed as employers or military recruiters with websites including “army.com” and “navyenlist.com” and internet search ads with slogans such as “The Army Wants You!”, the FTC said. The publicly traded Career Education, which has an Illinois headquarters and Trump administration ties, then pressured...

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