Payment for recruiting new students The Commission advised a school that it might properly offer and pay a…
72 F.T.C. 1052 · Nov. 21, 1967 · Digest No. 149
source volume section (72 F.T.C. 1052)
Text is machine-OCR of the printed volume and may contain errors. Advisory opinions are the Commission's views on proposed conduct, not binding orders.
No. 149. Payment for recruiting new students The Commission advised a school that it might properly offer and pay a stated sum of money to present students under the following circumstances: , or near, the conclusion of a course of instruction students would be supplied with cards recommending the school for distribution to their friends. When and if a recipient of one of the distributed cards contracted for, and paid the fee for, a course of study offered by the schooJ, the student who had distributed that card wouJd be, at his option, paid a stated sum or would have an equal sum credited against the cost of his further studies.
DISSENTING OPINION BY JONES Commissioner:
In her view this particular type of paid testimonial (where students are to receive $10 credit on tuition for every new enrollee recruited by them) without disclosing the fact of such payment is inherently deceptive. (File No. 683 7036, released Nov. 21, 1967.