2024-10-08
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Study Abroad
Coursera's OPM Business Faces Scrutiny Amidst UMGC Lawsuit
Key Takeaways from the UMGC Lawsuit Against Coursera's OPM Services
Coursera's OPM Business Faces Scrutiny Amidst UMGC Lawsuit
Student Defense has filed a complaint against UMGC, a university that prohibits the payment of commission, bonus, inducement, or other incentive payments based on student enrollment success. Coursera, a MOOC provider, has a growing OPM business, accounting for $14.3 million in revenue out of $170.3 million during the company's second quarter of 2024. The complaint alleges that UMGC misaligned its policies and contract with Coursera, leading to unfair and deceptive trade practices. The complaint also invokes 2011 guidance from the Obama-era Education Department, which allowed colleges to enter revenue-sharing agreements with companies that provide recruiting help bundled with multiple services. The 2011 guidance was broadly banned in a 1990s revision to the federal Higher Education Act, which opened the doors for online program manager firms and MOOC providers to strike tuition-share agreements with colleges. Coursera acknowledges the criticisms against the bundled services exception and its potentially vulnerable legal status. The lawsuit does not include claims under the Higher Education Act but instead targets claims under D.C.'s consumer protection laws.
