By Dean Seal

The Federal Trade Commission has dismissed a Biden-era complaint against Grand Canyon Education that accused the for-profit education company of falsely claiming to be a nonprofit.

The agency said Friday that the 2023 case against Grand Canyon, which provides support services to colleges and universities, has already suffered losses in court from two motions to dismiss.

Those losses are compounded by the company getting a $37.7 million fine from the Education Department, which was tied to the same allegations, rescinded following a challenge in appellate court, the FTC said.

"In its reduced form, this case presents consumers very little upside relative to the cost of pursuing it to completion," the FTC's three commissioners said. "We view it as imprudent to continue expending commission resources on a lost cause."

The Biden-era FTC had alleged that Grand Canyon, along with Chief Executive Brian Mueller, deceived prospective doctoral students about being a nonprofit and about the costs and course requirements of its doctoral programs.

The suit further claimed Grand Canyon had engaged in deceptive and abusive telemarketing practice.

The lawsuit was amended last September after parts of it were thrown out by a federal judge in Arizona. The FTC continued to work the case after President Trump took the White House and fired the agency's two Democratic commissioners earlier this year, according to court records.

Trump's presidential victory was widely considered a boon for for-profit education companies such as Grand Canyon after Biden administration increased oversight and regulatory pressure on the sector. The first Trump administration had eased restrictions on the industry.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

August 15, 2025 17:49 ET (21:49 GMT)

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