The Federal Trade Commission is cracking down on for-profit education, citing deceptive practices.
The FTC put a total of 70 for-profit higher education institutions “on notice,” saying that the agency won’t tolerate false promises about graduates’ job and earnings prospects and will impose “significant financial penalties” on violators.
“For too long, unscrupulous for-profit schools have preyed on students with impunity, facing no penalties when they defraud their students and drive them into debt,” FTC Chair Lina M. Khan said in a statement.
The agency said it is resurrecting its Penalty Offense Authority, found in Section 5 of the FTC Act to make sure that bad actors pay a price.
The list represents “the largest for-profit colleges and vocational schools across the country,” the FTC said, adding, “The companies operating these colleges will be on notice that they could incur significant sanctions for engaging in certain unlawful practices.
The practices cited in the notice could lead to civil penalties of up to $43,792 per violation.
The Commission said the “broad-based initiative” is the first use of its Penalty Offense…