Ashworth College settles with FTC over false claims
Online Ashworth College agreed to settle Federal Trade Commission charges that the school falsely claimed many of its programs would put students in a position to change careers and that their credits would transfer to other schools, the FTC said on Tuesday.
In many cases, the FTC said, credits would not transfer, and completion of the online programs would not suffice to meet state requirements to work in certain fields. Among the examples the commission cited were real estate appraisers, home inspectors, elementary school educators and massage practitioners.
"When schools promise students they can transfer course credits or get a better job after completing their programs, they'd better be able to back up those claims," Jessica Rich, director of the FTC's Bureau of Consumer Protection, said in a statement. "Ashworth College didn't tell the truth when it made those promises to prospective students."
The school also overhyped the job opportunities in the various fields it was recruiting students for, the FTC said. Ashworth, a for-profit school in business since 1987, said it enrolls 35,000 students each year.
An $11 million penalty attached to the settlement, which is still subject to court approval, was suspended due to the school's inability to pay, the FTC said. In addition, Ashworth agreed to not make misleading claims about the availability of employment, the ability to transfer credits or that no additional training or certifications are needed for a career when they are.
In a statement, Ashworth said the issues tackled by the FTC represented "a few isolated incidents" and ignored the school's nearly three decade track record.
"We believe the numbers tell the real story: as we report to our accreditor, for our career and degree programs combined, Ashworth College has a 91 percent student satisfaction rating, 93 percent of students report achieving their goals after completing their studies and students graduate without student loan debt," the school said. "Although we disagree strongly with the FTC's allegations, we nevertheless elected to settle this matter rather than prolong it so we can focus our energy and resources on what matters most: delivering effective, flexible and affordable educational programs to students with diverse education goals and who are often underserved."
