The FTC has issued two warnings to two online high schools this week. The high schools are accused of ‘tricking’ consumers into paying for a diploma, which is actually ‘worthless.’ The prices are said to be in the hundreds of dollars per student, which his fairly commonly seen in the rapidly growing ‘diploma mills’ that are rocketing in popularity.
One of the main issues is that no states in the country recognize high school equivalency exams that are taken online. Employers and universities also don’t usually recognize these types of diplomas (though they may not check on them either in many cases).
In addition to the warnings issued to the ‘schools’ themselves, the FTC’s Jessica Rich, who is the director of the consumer protection bureau, said to parents, “If a company says you can get a diploma in no time at all or by simply taking an online test, it’s almost certainly a scam.”
The programs cited cost between $135 and $349 and allow ‘students’ to take certain classes or exams online. In some cases they could get ‘credit’ for ‘life experience.’ This includes getting an accounting credit for simply stating that they know how to balance a checkbook.
The FTC’s filings ask the court to put in place a temporary restraining order halting the operations and freezing the assets of the two separate sets of defendants: Stepping Stonez Development, LLC, also doing business as American Certification Specialists, Intentional Growth, LLC, and Stephen J Remley; and Capitol Network Distance Learning Programs, LLC, Capitol Network Digital Licensing Programs, LLC, Veritas Sales, Inc., Nicholas A. Pollicino, Anthony J. Clavien and Adam F. Pollicino.
Marketers will want to be aware of this growing industry because of the many potential scams associated with it. While there are certainly some legitimate companies out there looking to help young adults get a diploma or GED, many of them are complete scams. These companies are using savvy marketing techniques to draw in customers, which means they are likely also using digital marketers to help grow their businesses.
Avoiding marketing for these types of companies can help you to stay safe from any potential FTC troubles.
The FTC also issued a consumer alert on this issue, which you can read HERE.
