Colorado Technical University: What the Federal Court Record Shows

In 2019 the Federal Trade Commission sued the parent company that owned Colorado Technical University. What the public case file says, and what it does not.

1. The lawsuit

The Federal Trade Commission sued Career Education Corporation and several subsidiaries in federal court in the Northern District of Illinois. The case is Federal Trade Commission v. Career Education Corporation et al., civil action number 1:19-cv-05739, and the FTC's file number is 152 3264. Among the named defendants is Colorado Technical University, Inc., and a related entity, Colorado Tech, Inc. [1]

The FTC's case summary says the company, through its lead generators, used marketing tactics that the FTC alleged were deceptive. It lists these alleged practices: falsely telling consumers they were affiliated with the U.S. military; using unlawful tactics to generate leads; inducing consumers to submit information under the guise of providing job or benefits assistance; falsely telling consumers their information would not be shared; and calling consumers registered on the National Do Not Call Registry. [1]

These are the FTC's allegations as summarized on its case page. The order states that the defendants neither admit nor deny the allegations in the complaint, except that they admit the facts needed for the court's jurisdiction. The order is therefore a settlement, not a finding by the court, and neither the case summary nor the order establishes that any particular student was harmed. [4]

2. The money

The order's signature block for the judge is dated 2019, and the defendants' signatures are dated 2019. The FTC case page lists a filing labeled "Stipulated Order for Permanent Injunction and Monetary Judgment" with a timeline date of June 17, 2020. That date conflicts with the 2019 signatures and should be confirmed on the court docket before it is cited. [1][4]

3. Separate multistate settlement

A separate settlement with state attorneys general covered the same company. A Nebraska Attorney General press release describes debt relief for students of the company's schools. The release is the only source reviewed for this section, so the amount and terms should be confirmed from the court filings before they are repeated. [2]

4. What the record does not show

• It does not show that a court found Colorado Technical University itself liable for any alleged practice. The order is a stipulated settlement in which the defendants neither admit nor deny the allegations. The case names the subsidiary.
• It does not show how many students were affected, or what any individual student received.
• It does not show whether the current school operates the same marketing practices. Those practices belong to a time period the case covers.
• The 2021 advocacy letter asking the Department of Education to review the settlement is a request by an outside group, not a federal finding. [3]

5. Questions for the school

• Which lead generators, if any, did the school use during the period the FTC case covers, and what changes followed the FTC action?
• How does the school now verify that marketing vendors do not claim military affiliation or call numbers on the Do Not Call Registry?
• Will the school publish the restitution or debt-relief terms it was subject to, and how many students received relief?
• Who reviews vendor conduct, and how can a prospective student report a concern about a recruiter?

Sources