Decoding the Myths of Coding Bootcamps

Consumers experience the benefits of our countrys digital revolution on a daily basis. From smartphones, to connected thermostats, to the exploding world of so-called Big Data, consumers are constantly touched by technology. This in turn has created huge demand for a steady stream of qualified engineers and software developers to build these modern marvels. The Department of Labor predicts that by 2020 there will be a need for 1.4 million computing jobs in the U.S. However, our colleges and universities are only expected to graduate 400,000 students with the skills to qualify for those positions. Simply put, there will be one million more jobs available than workers able to fill them. This is one reason why software industry executives often talk about a war for talentluring prospective recruits high pay and generous benefits.

To help meet this demand, a new industrycoding bootcampshas emerged to offer students crash courses in computer programming. These schools are one part of the exploding EdTech sector, which has attracted billions of dollars in venture capital. The industry even received the imprimatur of the Obama Administration, which launched a pilot program in October to allow federal student aid dollars to flow to bootcamp operators. Given these tailwinds, it is not surprising that the industry has grown so quickly. By one estimate, enrollment was expected to grow by 74% in 2016 alone.

While these schools can offer a promising way to meet the significant demand for software developers, too many advertise deceptive job placement claims that create to unrealistic student expectations. Its become exceptionally common to see advertising boasting job placement rates of well over 90% with guaranteed high incomes upon graduation. With tuition costs ranging from $5,000 to as much as $21,000 , it is easy to see why bootcamp administrators would be tempted to stretch the truth.

State and federal consumer protection laws prohibit deceptive advertising. State attorneys general and the Federal Trade Commission (FTC) can and do enforce those laws. The bootcamp industry has made an attempt to police itself by, for example, creating guidelines regarding data collection. Unfortunately, self-regulation too becomes a fig leaf that allows anti-consumer practices to persist. The underlying problem at issue here deceptive advertising to potential studentsremains unaddressed.

Consumers should beware of those who cut corners in this growing industry via false advertising or questionable licensing. Keep in mind that not all schools engage in these dubious tactics. Many bootcamps do provide students with marketable skills that improve their abilities to land in-demand software jobs. To help spot potentially deceptive marketing in the coding bootcamp industry, the National Consumers League has released a consumer guide urging prospective students to take several basic steps.

First, watch out for too-good-to-be-true job placement claims. Claimed placement rates in excess of 90% are likely to be exaggerated and rely on cherry-picked data. Second, students should make sure the schools they are considering are licensed in the state in which they operate. Finally, dont rely solely on advertising materials provided by the bootcamp operator. Consumers should seek out independent information to evaluate their options such as alumni references and student reviews of the quality and qualifications of instructors.

Consumer education can go a long way toward helping address deceptive advertising in this industry. However, there is no substitute for effective enforcement by consumer protection agencies. This industry is relatively new and has shown significant potential for addressing our computer skills gap. Unfortunately, unless legitimate stakeholders get serious about reining in these deceptive advertising issues, it could cast a cloud over all bootcamps, legitimate and fraudulent alike.