WASHINGTON (Legal Newsline) —The Federal Trade Commission (FTC) announced Feb. 3 that Stratford Career Institute has agreed to stop making claims about education programs that the FTC had alleged were deceptive.
The FTC first brought charges forward in February 2016 when it alleged Stratford misled consumers about a high school “diploma program.” Stratford allegedly made false claims about the legitimacy of its education programs and high school equivalency programs. According to the FTC, these claims misled consumers.
Consumers would pay for a Stratford program only to later find out that the program failed to meet basic requirements set by most states. Consumers were purportedly told by colleges and potential employers that Stratford’s diplomas were not equivalent to a traditional high school.
As per the settlement agreement, Stratford will pay $250,000, part of a $6.5 million judgment. The rest will be suspended due to Stratford’s inability to pay. If, however, the FTC finds Stratford has misrepresented its financial condition, the full judgment amount will be imposed. Stratford is also barred from making deceptive claims in the future.
The FTC voted 3-0 to approve the stipulated final order. The order was placed in the U.S. District Court for the Northern District of Ohio.