Antitrust Law Daily Wrap Up, ADVERTISING NEWS: FTC charges Stratford Career Institute with deceptively advertising high school equivalency program, (Feb 22, 2016)
Organizations Mentioned:Stratford Career Institute, Inc.
By Michael Menzhuber, J.D., LL.M.
The FTC has charged Stratford Career Institute with violating the FTC Act’s prohibition on deceptive acts by misleading consumers about its high school equivalency program, which the FTC alleges fails to meet the basic requirements of most states (FTC v. Stratford Career Institute, Inc., Case No. 1:16-cv-00371, February 18, 2016 ).
The FTC’s complaint claims that Stratford, an online distance education school, included multiple references to a “high school diploma” in its advertisements, such as “official high school diploma”; “real high school diploma online”; and “legal high school diploma.” However, the Stratford program required only 18 credits for completion, while many states required more, including credits for classes not offered by Stratford.
According to the agency, Stratford also advertised that its high school program would lead to (1) an increase in earning potential; (2) access to better jobs and promotions; and (3) the ability to apply for higher education. Stratford’s own records allegedly showed that consumers who tried to use a Stratford diploma were told by prospective employers and college admission officers that the program was not the same as a traditional high school.
As a result of Stratford’s high school program falling short of its promises, thousands of students paid as much as $989 for a diploma that could not meet their educational or career needs, the complaint charged.
Companies: Stratford Career Institute, Inc.
News: Advertising ConsumerProtection FederalTradeCommissionNews