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FTC closes in on deceptive trade practices of for-profit schools

When individuals think of continued education they likely consider an institution that is focused on providing a solid instructive foundation first and foremost. However, the reality is that the motivation for many Las Vegas for-profit schools is to make money. In some instances, the school’s administration will do anything to get financial gain, even if that means misrepresenting their facility in order to attract more students.

Students in Las Vegas aren’t the only ones who can be affected by such fraud. In an effort to shed light on this nationwide issue, and put a stop to it, the Federal Trade Commission issued standards that educational institutions with vocational and distance education programs must follow.

A representative for the FTC explained that sometimes the private schools will use persuasive tactics to pressure a student to enroll in classes that are unwanted and unnecessary. In many cases the administration will lie about whether credits can transfer and how successful past graduates have been. These deceptive trade practices can cause unwitting students to endure excessive debt unnecessarily.

While many organizations are supportive of the FTC’s efforts, the Association of Private Sector Colleges and Universities believes that the new standards will be burdensome and are an attack on for-profit institutions. However, the issue is certainly prevalent given that the U.S. Department of Education claims that around 70 percent of their complaints are connected with private colleges.

If you feel that you have been deceived by a business and lost money as a result, consider discussing the matter with a commercial litigation lawyer. They may be able to assist you in receiving compensation for damages, and help prevent others from enduring the same fraudulent behavior.

Source: Inside Higher Ed, “FTC Joins For-Profit Fight,” Paul Fain, Nov. 14, 2013

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