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Antitrust & Trade Reg.

Oct. 27, 2026

Division III athletes sue NCAA over ban on athletic scholarships

A proposed nationwide class action alleges the NCAA's prohibition on athletic scholarships at more than 400 Division III schools amounts to illegal price-fixing that suppresses compensation for thousands of college athletes.

Three college athletes have filed a proposed nationwide antitrust class action accusing the NCAA of illegally suppressing compensation by prohibiting more than 400 Division III schools from awarding athletic scholarships.

The lawsuit, filed Friday in the Central District of California, alleges the NCAA and its member institutions engage in price-fixing by collectively barring schools from competing for athletes through scholarships based on athletic ability.

"The NCAA ...

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