What Rights Do Students Have If Their University Engages In Fraudulent Advertising?

If a university engages in fraudulent advertising, students may have several legal rights and options to seek redress for the harm caused. Fraudulent advertising can include misleading claims about the quality of education, job prospects, accreditation status, tuition fees, or program outcomes, all of which can significantly impact a student’s decision to enroll. Students who have been misled may be entitled to refunds, damages, or other remedies under consumer protection laws and contract law.

• Understand the Concept of Fraudulent Advertising
  Fraudulent advertising typically involves false or misleading claims made by an educational institution in order to attract students. Examples of fraudulent advertising in the context of higher education include:
  • False claims of accreditation or degree recognition.
  • Misleading information about job placement rates or post-graduation employment opportunities.
  • Inflated statements about the quality of faculty or academic programs.
  • Hidden fees or misleading tuition information.
  • Promises of financial aid or scholarships that are not available or significantly different from what was advertised.
  If the university made misleading representations that led you to enroll, these actions may qualify as fraudulent under consumer protection laws.
• Know Your Consumer Protection Rights
  Under consumer protection laws, students have the right to be informed truthfully and accurately about educational services. If a university engages in fraudulent advertising, students may be entitled to:
  • Refunds for tuition, fees, or other payments made based on false or misleading information.
  • Damages for any financial losses or harm caused by the fraudulent advertising, such as spending money on a program that doesn’t meet expectations or isn’t accredited.
  • Compensation for emotional distress, in some cases, especially if the fraud resulted in significant personal or professional harm.
  Federal and state consumer protection laws, including the Federal Trade Commission (FTC) Act and state deceptive trade practices laws, prohibit fraudulent advertising. Educational institutions that make false claims can be held accountable under these laws.
• File a Formal Complaint with the University
  If you believe that the university has engaged in fraudulent advertising, your first step is to file a formal complaint with the institution:
  • Contact the admissions office or student services to outline the specific misleading information or promises that influenced your decision to enroll.
  • Request a resolution, such as a refund, program switch, or transfer to another institution.
  • Document everything: Keep copies of all communications, advertisements (online, print, etc.), and other supporting evidence that show the misrepresentation.
  The university may offer a resolution, such as refunding tuition or allowing you to transfer out of the program. However, if the university does not respond appropriately, you may need to escalate your complaint.
• Seek Help from Accreditation Bodies or Consumer Protection Agencies
  If the fraudulent advertising relates to claims of accreditation or program quality, consider contacting the relevant accreditation body. Universities that make false claims about accreditation may be violating accreditation standards, and the accrediting body may investigate.
  • Accrediting Agencies: If the program or institution claimed to be accredited by a certain organization but isn’t, file a complaint with the appropriate accrediting body (e.g., Council for Higher Education Accreditation or regional accreditation organizations).
  • Consumer Protection Agencies: Report the fraudulent advertising to state or national consumer protection agencies. In the U.S., the Federal Trade Commission (FTC) and your state’s Attorney General’s office handle complaints related to false advertising and deceptive practices in higher education.
  • Better Business Bureau (BBB): You can also file a complaint with the BBB, which can mediate disputes between consumers (students) and businesses (universities).
• Legal Action for Breach of Contract or Fraud
  If you are unable to resolve the issue through internal university processes or consumer protection agencies, legal action may be necessary. There are two potential avenues:
  • Breach of Contract: Your enrollment in the program is typically governed by a contract (the university's admissions agreement), and if the university failed to fulfill the terms of this contract—such as providing the program as advertised or failing to deliver promised educational outcomes—you may have a breach of contract claim.
  • Fraud: If the university knowingly made false statements or intentionally misled students to get them to enroll, you may have a claim for fraud or deceptive business practices. Fraud requires proving that the institution knowingly made false claims, which resulted in financial harm.
  In either case, you may want to consult with an attorney who specializes in education law or consumer protection. A lawyer can help you determine whether you have a viable legal claim, assist with filing a lawsuit, and guide you through the legal process.
• Class Action Lawsuit
  If fraudulent advertising has affected a large group of students, you may consider joining or initiating a class action lawsuit. A class action allows a group of students who were similarly misled to collectively pursue damages. This can be particularly useful when individual claims are not large enough to warrant separate lawsuits, but collectively, the harm is significant.
  • A lawyer can help assess whether the issue affects enough students to justify a class action.
• Consider Alternative Dispute Resolution (ADR)
  Many universities offer alternative dispute resolution (ADR) options, such as mediation or arbitration, to resolve disputes between students and the institution. If you are unable to reach a satisfactory resolution through direct communication or formal complaints, ADR may provide a faster and less costly alternative to litigation. However, keep in mind that ADR might not be appropriate if the issue involves significant fraud or misrepresentation.

Example:

A student enrolls in a master's program at a university after being told the program was accredited by a well-known national agency. However, after starting the program, the student discovers that the university is not accredited by the claimed agency, and the degree may not be recognized. The student files a complaint with the university, but the school refuses to refund the tuition. The student then files a complaint with the state Attorney General’s office for deceptive practices and eventually sues the university for fraud and breach of contract, ultimately receiving a refund and compensation for their tuition.

Final Thoughts:

If a university engages in fraudulent advertising, students have the right to take action to protect themselves and seek a remedy, including refunds or damages. Start by reviewing your enrollment agreement and gathering evidence of the misrepresentation. File complaints with the university, accreditation bodies, and consumer protection agencies, and if necessary, pursue legal action. Fraudulent advertising in education is a serious matter, and students have the right to hold institutions accountable.