Golden State Today

Attorney General Rob Bonta of California has announced a significant settlement with the University of Phoenix, addressing unlawful military student recruitment tactics employed by the institution between 2012 and 2015. The settlement, amounting to $4.5 million in penalties and additional monetary relief, comes after an investigation revealed violations of California's consumer protection laws.

Bonta emphasized the deceptive practices used by the University of Phoenix, stating, "The University of Phoenix used deceptive and unlawful tactics to convince service members to use their hard-earned education benefits at its own institution." He further highlighted the importance of the settlement in supporting military relief organizations that aid service members and their families.

The Attorney General underscored the seriousness with which California approaches consumer protection, particularly in cases where predatory practices target servicemembers and veterans. This settlement serves as a stern warning to educational institutions engaging in such behaviors, as stated by Bonta, "Today’s settlement sends a strong message that schools who use predatory practices to recruit servicemembers and veterans will be held to account."

The investigation into the University of Phoenix is part of a broader scrutiny of for-profit schools that have been criticized for employing aggressive tactics to recruit military students. These practices were facilitated, in part, by certain provisions in the Higher Education Act of 1965, which created incentives for institutions to enroll military students. However, recent legislative changes have sought to address these issues, including the amendment of the Higher Education Act to close existing loopholes.

The complaint against the University of Phoenix outlined various violations of consumer protection laws and Department of Defense directives aimed at regulating recruitment practices targeting servicemembers. The institution was accused of bypassing requirements for accessing military installations, engaging in improper solicitation at military events, and unlawfully using official military seals for promotional purposes.

In addition to the financial penalties, the University of Phoenix and its parent company, Apollo Education Group, Inc., are now subject to stringent injunctive terms aimed at curtailing improper military-recruitment tactics. These terms include prohibitions on solicitation at military events and bases, unauthorized use of military credentials, and the display of military seals without authorization.

Attorney General Bonta's commitment to safeguarding California students and military personnel is evident in his recent legislative efforts and legal actions aimed at protecting veterans from exploitation and ensuring accountability within the education sector. This settlement with the University of Phoenix marks a significant step towards upholding consumer protection and ethical recruitment practices in the education industry.