The Federal Trade Commission has charged online distance education school Stratford Career Institute with misleading consumers about its high school equivalency program that the agency alleges failed to meet the basic requirements set by most states.
In its complaint, the FTC alleges that Stratford’s extensive advertising for its high school program included multiple references to a “high school diploma” leading to an increase in earning potential, access to better jobs and promotions, and the ability to apply for higher education. The FTC’s complaint alleges that Stratford’s high school program fell short of its promises, meaning thousands of students nationwide paid as much as $989 for a diploma that could not meet their educational or career needs.
“Stratford promised that its high school program could help students get better jobs and access higher education,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “For many students, those promises were false because schools and employers rejected Stratford’s supposed ‘diploma.’”
According to the complaint, the school purchased online advertising tied to search terms like “official high school diploma,” “real high school diploma online,” and “legal high school diploma,” among others.
Stratford’s own records, the complaint alleges, show that consumers who tried to use the Stratford diplomas were often told by prospective employers and college admissions officers that the program was not the same as a traditional high school. The complaint notes that the Stratford program requires only 18 credits for completion, while many states require substantially more, including credits in courses not offered by Stratford.
The complaint alleges that Stratford violated the FTC Act’s prohibition on deceptive acts by making false and unsubstantiated promises to consumers.
The Commission vote authorizing the staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Northern District of Ohio.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.
As someone deeply entrenched in the field of consumer protection and education, my expertise spans a broad range of topics, including deceptive advertising practices, online education, accreditation standards, and the regulatory landscape governed by organizations like the Federal Trade Commission (FTC). My knowledge is informed by a comprehensive understanding of consumer rights, educational standards, and the enforcement mechanisms used by regulatory bodies like the FTC to safeguard individuals from misleading claims and deceptive practices.
Regarding the specific matter concerning the Federal Trade Commission's charges against the Stratford Career Institute, the case revolves around allegations of misleading advertising related to its high school equivalency program. The FTC contends that Stratford Career Institute misrepresented its program by promoting it as a pathway to a "high school diploma" that could significantly impact earning potential, job prospects, and access to higher education. However, the FTC asserts that the program failed to meet the fundamental requirements set by most states for a recognized high school diploma.
The crux of the complaint lies in several key assertions:
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Misleading Advertising: The FTC alleges that Stratford's extensive advertising campaigns made claims about its high school program that were deceptive, as they did not align with the actual educational standards or the acceptance of its diplomas by employers and educational institutions.
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Discrepancy in Educational Requirements: The complaint highlights that while Stratford advertised its program leading to a high school diploma, it fell short in meeting the comprehensive credit requirements mandated by many states. Specifically, Stratford's program supposedly required only 18 credits for completion, whereas numerous states demand a substantially higher number of credits, including courses not offered by Stratford.
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Consumer Impact: The FTC contends that thousands of students across the country paid significant fees, up to $989, for a diploma that failed to meet the expected educational or career needs, leading to rejection by employers and academic institutions.
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Violations of FTC Act: The complaint alleges that Stratford violated the FTC Act by engaging in deceptive and unsubstantiated practices, making false promises to consumers regarding the value and recognition of their high school diploma program.
The action taken by the FTC demonstrates its commitment to enforcing consumer protection laws and ensuring that educational institutions adhere to truthful advertising practices. By initiating legal proceedings in the U.S. District Court for the Northern District of Ohio, the FTC aims to address these alleged violations and protect consumers from deceptive claims in the educational sector.
It's important to note that the FTC's role extends beyond this case, as it continually works to promote fair competition and safeguard consumer interests across various industries. Consumers who suspect deceptive practices or wish to learn more about their rights can access resources provided by the FTC, such as filing complaints online or contacting them directly via phone.
For anyone seeking further details about the FTC's actions, updates on consumer protection matters, or guidance on recognizing deceptive advertising, exploring the FTC's official website, social media channels, blogs, and press releases can provide valuable insights and resources.
