Tag: Bureau of Consumer Protection

In December 2019, the FTC announced The University of Phoenix and its parent company agreed to pay a record $191 million to resolve allegations that they used deceptive advertisements falsely touting their relationships and job opportunities with companies such as AT&T, Yahoo!, Microsoft, Twitter, and The American Red Cross. The settlement order requires UOP to pay $50 million in cash, as well as cancel $141 million in debts owed to the school by students harmed by the deceptive ads.

In March 2021, the FTC sent payments totaling nearly $50 million to more than 147,000 UOP students who may have been lured by allegedly deceptive advertisements.

In late September 2023, the U.S. Department of Education announced that it will forgive nearly $37 million in federal loans for more than 1,200 students affected by the University of Phoenix’s deceptive practices, based in part on the FTC’s 2019 case.

The Federal Trade Commission filed suit against American Screening for failing to deliver on promises that it could quickly ship products like face masks, sanitizer, and other personal protective equipment (PPE) related to the coronavirus pandemic.

The lawsuits allege that the companies violated the FTC’s Mail, Internet and Telephone Order Rule (Mail Order Rule), which requires that companies notify consumers of shipping delays in a timely manner and give consumers the chance to cancel orders and receive prompt refunds.

The FTC obtained an order against education technology provider Edmodo for collecting personal data from children without obtaining their parent’s consent and using that data for advertising, in violation of the Children’s Online Privacy Protection Act Rule (COPPA Rule), and for unlawfully outsourcing its COPPA compliance responsibilities to schools. 

The FTC and six states filed a lawsuit against rental listing platform Roomster Corp. and its owners John Shriber and Roman Zaks for allegedly duping consumers seeking affordable housing by paying for fake reviews and then charging for access to phony listings.  Separately, the FTC and the states filed a proposed order against Jonathan Martinez—who allegedly sold Roomster tens of thousands of fake reviews—requiring him to pay $100,000 and cooperate in the FTC’s case against Roomster.