For this reason, it should come as no surprise that one of the main causes of the Phoenix University lawsuit was, allegedly, misleading ads. When there exists even a tiny doubt about the claims, the FTC steps in the game. As mentioned before, the Federal Trade Commission protects consumer rights and ensures consumers are not deceived. If an institution makes such claims, they should be accurate. Therefore, many potential students preferred Phoenix University with the hope of a bright future. In the advertising, the university claimed that the graduates had great opportunities, as they partnered with the employers to shape curriculum or hire the students. Most students choose higher education and hence, huge education debt, hoping to get decent jobs after graduation. It was claimed that enrollment advisors convinced the potential students by mentioning that huge companies hire these people because of their education in Phoenix as the companies prefer this school over others. Another point marked that the students could enjoy exclusive connections provided only to Phoenix University graduates. One of such talking points mentioned that the students have access to fantastic competitive advantage as it was visible by the alumni hired by industry giants. They should have conveyed the university’s messages in their discussions with the potential students to convince them to enroll. Enrollment StrategiesĪllegedly, the university was also giving talking points to enrollment staff. In this way, people get skills that the employers need, or in other words, the school prepares students for their future jobs. Another radio ad claimed that the university was partnering with major employers to shape the curriculum. In a radio commercial, as a part of the same marketing campaign called “Let’s Get to Work,” the narrator mentioned that the university creates opportunities for the students by connecting huge employers like AT&T, which are interested in Phoenix graduates. Such an ad implied that the several alumnae of Phoenix University had great positions in huge companies like Yahoo!. Next, the university launched other ads on TV, which presented former students together with employers’ logos. Such an approach, allegedly, ensured that the graduates would be perfect fits for these organizations. Besides, it was mentioned that the university shapes the curriculum based on the learnings from the companies. One of the biggest issues was the ad called “the Parking Lot.” It implied that Phoenix University was collaborating with popular companies such as Microsoft or Adobe to create options for the students. Though the investigation that led to the University of Phoenix settlement started in 2011, it only became a center of media attention during 2012-2014. Advertising Strategy of Phoenix University Another factor that made the investigation significant was the shockingly high default rates. The associate director of the Center for American Progress mentioned that these documents, especially the ones about military recruitment, had utmost importance because Phoenix University was the top recipient of GI Bill funds- more than $750 million. The FTC wanted to investigate the period from 2011 till the time of the start of the investigation. Therefore, Apollo Education Group was obliged to provide the necessary documents and data about Phoenix University’s practices in enrollment, financial aid, tuition fees, debt collection, military recruitment, etc. Such allegations were in the context of deceptive acts that could have affected educational products or accreditation advertising. In the investigative demand sent to the parent company, the FTC notified them about their request to look into the several allegations. In 2015, Apollo Education Group -the university’s parent company announced that the FTC started an investigation against them. The University of Phoenix settlement was the result of the long-lasting investigations. The commission achieves these goals by enforcing laws against businesses engaging in deceptive practices and educating consumers about scams or frauds. The Federal Trade Commission was established in 1914, and since then, it aims to protect consumers while promoting competition.
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