For Immediate Release
Media Contact: Bob Cooper
Date: June 27, 2012
States Shut Down Deceptive Website Targeting Veterans' Education Benefits
(Boise) – A California company that targeted military veterans to attend for-profit colleges has agreed to give up its “GIBill.com” website and pay $2.5 million to 20 states as part of a consumer protection settlement, Attorney General Lawrence Wasden said today.
QuinStreet, Inc., of Foster City, California, operates websites that generate leads, primarily for the for-profit education industry. The states alleged that several of the company’s sites targeting military personnel, including GIBill.com, were deceptive and misleading in giving the appearance that the sites were operated, owned or endorsed by the U.S. government or military. The sites listed “eligible GI Bill schools” and gave the impression that veterans could use their education benefits only at those schools. In fact, the list only consisted of QuinStreet clients, which were primarily for-profit colleges.
“This settlement ends the deceptive practices this company used to mislead the people who risk their lives to protect our freedom,” Attorney General Wasden said. “Our veterans and active duty military personnel have earned their educational benefits and should not be subjected to trickery when deciding where best to use those benefits.”
QuinStreet will relinquish ownership and control of the domain “GIBill.com” to the U.S. Department of Veterans Affairs, which will use the domain to promote the GI Bill program and educate service members about the benefits available to them under the program. QuinStreet will also shut down and cease to use any domain names that include the term “GI Bill.”
In addition, QuinStreet agreed to:
Idaho will receive $100,000 from the settlement to reimburse the Attorney General for his costs in the investigation. The money will be deposited in the Consumer Protection Account.
State Attorneys General have seen for-profit colleges intensify their recruitment of veterans since Congress enacted the Post 9/11 GI Bill in 2008. Military personnel and veterans received $9 billion in educational benefits in Fiscal Year 2010. Military benefits paid to 20 for-profit colleges increased 683 percent, from $66 million in 2006 to a projected $521.2 million in 2010, according to an analysis by a U.S. Senate Committee.
- End -