Grand Canyon University Trims FTC Challenges to Nonprofit Status

Grand Canyon University convinced a federal court that the Federal Trade Commission lacked authority to challenge its nonprofit status under Section 5 of the Federal Trade Commission Act.

GCU is involved in another case questioning its conversion from a for-profit to a nonprofit university. It also recently settled a case in April with a whistleblower alleging it obtained federal government funding by failing to disclose violations of the Higher Education Act.

The FTC here said that GCU was operating as a for-profit organization because it was controlled by Grand Canyon Education Inc., and at least 60% of its profits were ...