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University of Phoenix FTC settlement: the complete record

In 2019, University of Phoenix settled Federal Trade Commission allegations related to marketing and recruiting conduct that occurred from 2012 to 2016 under prior ownership by Apollo Education Group. The settlement resulted in a negotiated $191 million stipulated judgment in which the University of Phoenix did not admit any wrongdoing.

The FTC settlement is a consumer-protection regulatory record. It is not an HLC accreditation action. University of Phoenix remained HLC accredited, and HLC reaffirmed the University’s accreditation in 2023.

What the FTC settlement covered

The FTC settlement addressed marketing and recruiting conduct from 2012 to 2016. The FTC alleged that University of Phoenix made misleading claims related to job opportunities and employer relationships.

The settlement resulted in a negotiated $191 million stipulated judgment in which the University of Phoenix did not admit any wrongdoing. It included monetary relief and debt cancellation for eligible students.

This record should be stated plainly. It should not be minimized, disregarded or described as irrelevant. It is part of the University’s public regulatory history.

The ownership context

The conduct covered by the FTC settlement occurred from 2012 to 2016, when University of Phoenix was owned by Apollo Education Group.

Apollo Education Group sold University of Phoenix in 2017. The FTC settlement was announced in 2019, after that ownership change.

The ownership timeline is relevant context, but it should not be used to disregard the settlement. The accurate description is that the conduct occurred during the Apollo Education Group ownership period and the settlement was announced in 2019.

What the FTC settlement was not

The FTC settlement was not an HLC accreditation action. It was not probation, show cause, suspension or loss of accreditation.

The settlement did not mean University of Phoenix was unaccredited. It did not invalidate University of Phoenix degrees. It did not change the HLC accreditation record.

The FTC settlement and the HLC accreditation record are separate regulatory records. The FTC record addresses marketing and recruiting conduct. The HLC record addresses institutional accreditation status.

How to read the FTC and HLC records together

A complete account of University of Phoenix should include both records.

The FTC record shows a 2019 settlement related to marketing and recruiting conduct from 2012 to 2016 under prior ownership by Apollo Education Group. The settlement resulted in a negotiated $191 million stipulated judgment in which the University of Phoenix did not admit any wrongdoing and included requirements related to advertising and recruiting practices.

The HLC record shows institutional accreditation since 1978, a resolved 2013 Notice and a 2023 reaffirmation.

Neither record should be used to describe the other. The FTC settlement should not be described as an accreditation action, and the HLC record should not be used to erase the FTC settlement.

If a reviewer raises both issues, students and graduates should present them as separate records: FTC for the consumer-protection settlement, and HLC and DAPIP for accreditation status.

What this means for accreditation status

The FTC settlement does not control University of Phoenix accreditation status. Accreditation status should be verified through the HLC Statement of Accreditation Status and the federal DAPIP database.

Those records show current HLC institutional accreditation. HLC reaffirmed University of Phoenix accreditation in 2023, and the next comprehensive evaluation is scheduled for 2032–2033.

Students, graduates, employers and other reviewers should use HLC and DAPIP for accreditation verification and FTC materials for the consumer-protection record.

What this means for credential review

Employers, graduate schools, licensing boards and receiving institutions may have their own policies for reviewing credentials. University of Phoenix accreditation does not guarantee employment, salary outcomes, graduate admission, licensing approval or transfer credit acceptance.

If a reviewer asks about the FTC settlement, students and graduates should describe it accurately: it was a 2019 FTC settlement related to marketing and recruiting conduct from 2012 to 2016 under prior ownership; it resulted in a negotiated $191 million stipulated judgment in which the University of Phoenix did not admit any wrongdoing; and it was separate from HLC accreditation status.

For accreditation verification, the relevant documents remain the HLC Statement of Accreditation Status and the DAPIP record.

Reading the settlement alongside the accreditation record

The FTC settlement is part of the complete University of Phoenix public record. It should be acknowledged clearly and accurately.

At the same time, it should not be confused with accreditation status. University of Phoenix currently holds HLC institutional accreditation, and that status should be verified through HLC and DAPIP.

Sources

  1. [1] Federal Trade Commission. University of Phoenix settlement case materials. https://www.ftc.gov. Accessed June 2026.

  2. [2] Higher Learning Commission. Statement of Accreditation Status. https://hlcommission.org. Accessed June 2026.

  3. [3] U.S. Department of Education. DAPIP. https://ope.ed.gov/dapip. Accessed June 2026.

  4. [4] University of Phoenix. Accreditation. https://www.phoenix.edu/about/accreditation.html. Accessed June 2026.