US News rating was mere opinion except as to school that intentionally submitted bad information to it
Favell v. Univ. of
Southern Cal., 2024 WL 751006, No. CV 23-3389-GW-MARx (C.D. Cal. Jan. 23, 2024)
Plaintiffs alleged
that defendants conspired to inflate the US News ranking of USC Rossier School
of Education by submitting inaccurate or incomplete data to US News and market
the resulting ranking to the public. USC had a business relationship with 2U,
an education technology startup, to develop an online Master of Arts in
Teaching program. This was the first of USC Rossier’s online degree programs
and went live in June 2009; 2U received an undisclosed percentage of the
tuition revenue.
US News calculates
its education school rankings using eleven criteria, including “student
selectivity,” which accounts for 18% of the school’s total score and is
comprised of three objective sources of admittance data: (1) the school’s
doctoral acceptance rate (6%); (2) mean GRE quantitative scores (6%); and (3)
mean GRE verbal scores (6%).
During the relevant
period—through 2021—US News didn’t distinguish between in-person and online programs.
However, USC submitted student selectivity data only for USC Rossier’s highly
selective, in-person Ph.D. program, but not from its less-competitive EdD
program (which was offered online after 2015). From the 2009 rankings to the
2010 rankings, USC Rossier’s reported acceptance rate dropped 40 percentage
points (from 50.7% to 10.5%), and its ranking rose 16 places (from #38 to #22).
US News began publishing a specialty ranking of online master’s degrees in
education in 2013, when USC Rosier’s online Master of Arts in Teaching program
ranked #44. USC didn’t appear on the list after that.
Defendants allegedly
heavily marketed USC Rossier’s rapidly rising ranking to the public to boost
enrollment in the online programs. USC allegedly orchestrated this scheme
through its submission of false/incomplete data, and then advertised the
resulting rankings knowing that they were misleading. 2U allegedly helped “push
the rankings out on a much broader scale,” and knew or should have known that
the rankings were fraudulently procured. For example, 2U engaged in online
advertising to promote USC Rossier’s ranking; it spent more than half of its
revenue on program sales and marketing. USC likewise regularly touted USC
Rossier’s ranking (and that USC Rossier was “top-ranked”) in press releases, on
social media, on the Rossier Website, and in other promotional materials.
Fortunately for 2U,
the court thought it was accused only of puffing. The court considered two kinds
of statements: (1) statements that USC Rossier was “top-ranked,” and (2)
statements which included the specific numerical ranking assigned by US News.
The first category
was “textbook puffery.” A claim that a school is “top-ranked” is both “vague
[and] highly subjective” and lacks “the kind of detailed or specific factual
asserti...
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3mo“A content first approach”. Please more of this! IHEs need to think “owned media” like their competitors in edtech have done for years. Differentiation, as you say, is all you can control. The tools are like toasters. Everybody else has them also. I would like to see more colleges and universities sharing their stories with a sense of authority and conviction.