Goldberg, Nathan I

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IN THE 11ATTER OF NATHAN I. GOLDBERG, TRADING AS C011MONWEALTH TRAINING INSTITUTE COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 4880. Complaint, Dec, 30, 1942-Decision, May 31, 1944 Where an individual engaged in the interstate sale and distribution of correspondence courses to prepare students for examinations for certain Civil Service positions in the United States Government,- (a) Represented through statements in advertising material distributed to prospective students and through agents, designated as "registrars," who called upon them, that he could offer positions in the government which were under his control and which could be secured by taking his courses; ' (b) Represented through said "registrars" that he and his school were connected with the Government and were authorized by the Civil Service Commission to qualify -applicants for government positions; and that awlicants for his courses of training were specially selected; and .

(c) Represented, as aforesaid, that vacancies existed in certain branches of the Government which could be filled immediately after an applicant had passed the examination with respect thereto;

The facts being he had no positions to offer and could not qualify any one for a Government job, had no connection with the Government or any branch thereof, and could not guarantee positions or appointments of persons who passed examination; applica;nts were not specially selected, but all who applied were generally accepted; his list of positions contained many in which no open competitive examinations had been announced for a number of years; in many instances where his agents represented that vacancies existed, the positions had either been abolished or the vacancies supplied; and in many other cases, even though a student might successfully pass the examination and be placed on the eligible list, he might not be given appointment for a considerable period of time; and (d) Represented or implied to prospective students, through his trade name "Commonwealth Training Institute," that he conducted an institution of learning with a staff of experienced and qualified educators, and that his school was an extensive institution offering training in philosophy, art, science, and other learned subjects; employing such terms, to further said impressions, as "Department of Education," "Department of Administration," "Muniment of Matriculation," and other terms implying the existence of a substantial resident institution; The facts being he offered only one course of study which was substantially the same regardless of the examination for which his students wished to prepare; all the material used by him in connection with his course was purchased from various publishers; no specific or thorough instruction was given in any subject of learning; and his said school was not an institution of learning in the accepted sense of the term; · With tendency and capacity to confuse, mislead, and deceive members of the public into the enoneous belief that such representations were true and thereby induce a substantial number thereof to purchase his courses of study and instruction and pursue the same:

, 504 FEDERAL TRADE· COMMISSION DECISIONS Complaint 38 F. T. C.

Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public, and constituted unfair and deceptive acts and practices in commerce. · Mr. William L. Pencke for the Commission .

../ltfr. Joseph A. Aspero, of Worcester, Mass., for respondent. COMPLAINT Pmsuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said act, the Federal Trade Commission, having reason to believe that Nathan I. Goldberg, trading as Commonwealth Training Institute, hereinafter referred to as . respondent, has violated the provisions of the said act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows:

PARAGRAPH 1. Respondent, Nathan I. Goldberg, is an individual, trading and doing business under the firm name and style of Commonwealth Training Institute, with his principal office and place of business at 120 Front Street in the city of Worcester, State of Massachusetts. PAR. 2. Respondent is now, and has been for more than two years last past, engaged in the sale and distribution in commerce between and among the various States of the United States of eomses of study and instruction intended for preparing students thereof for examinations for certain Civil Service positions under the United States Government, which said courses are pursued by correspondence through the medium of the United States mail. Respondent, in the course and conduct of said business during the time aforesaid, caused and does now cause his said courses of studying and instruction to be transported from his said place of business in the State of Massachusetts to, into and through States of the United States other than Massachusetts to the purchasers thereof in such other States.

PAR: 3. In the sale of said courses of study and instruction respondent makes use of printed advertising matter mailed or distributed to prospective students in many States of the United States in and by which various misleading representations are made in regard to said courses or matters and things connected therewith. Among such misleading representations are those which represent or imply that respondent has positions under the United States Government to offer which are under his control and which can be secui·ed by taking respondent's courses. Typical of such representations are the following:

Subject: Government Jobs Federal-state-Municipal \Ve will advise you free of charge how to qualify for a Government job. Over 1700 Different Classifications of U. S. Civil Service Jobs. Partial List Illustrating Various Positions Railway Postal Clerk Immigration Patrol Inspector City-Mail Carrier Bookkeeper Post Office Clerk Customs Inspector ..

COMMONWEALTH TRAINING INSTITUTE ' 505 503 Complaint Rural (motor) carrier Forest & Field clerk Clerical-filing Typist Statistical Clerk Stenographer Watchman-Guard Laborer Storekeeper--Gauger Customs Patrol Inspector Student fingerprint classifier Positions either in Washington, D. C. or in most cases throughout the United States. PAR. 4. By means of statements and representations made by agents and representatives of the respondent who are designated "Registrars" and who call upon prospective students, the respondent represents to such prospective students that he has positions in the United States Government to offer which are under his control or which he can secure for students taking his courses; that he and his school are connected with the United States Government and authorized by the United States Civil Service Commission to qualify applicants for government jobs; that the applicants for respondent's courses of training are specially selected; that vacancies exist in certain branches of the United States Government which can be filled immediately after an applicant has passed the examination with respect to such positions. PAR. 5. All of such statements and representations are false, misleading and deceptive. In truth and in fact, respondent has no positions to offer and cannot qualify anyone for a government job; said partial list of various positions enumerated by respondent contains many positions in which no open competitive examinations have been announced for a number of years; respondent has no connection whatever with the government of the United States or any branch thereof, and cannot guarantee positions or appointments of persons who have passed examinations. Applicants for courses of study are. not specially selected, but generally all who apply for the courses of instruction are accepted by the respondent. In many instances where respondent's agents have represented that vacancies exist, such positions have either been abolished by the Civil Service Commission or the vacancies have in fact been supplied. In many other instances even though the student may successfully pass a civil service examination and be placed on the eligible list he may not be given employment for a considerable period of time. Respondent's representatives are merely salesmen and the designation of such salesmen as "Regis..: trar§" further tends to mislead prospective students into the belief that they are officials of the Civil Service Commission. - PAR. 6. In his enrollment contract the respondent has embodied a provision for refund of tuition fees wherein it is stated that: After completing the training and payment of fees as agreed, shou)d the rating I earn on the first Civil Service Examination I take fail to make me eligible for appointment, I shall receive a refund in full under the following conditions: 1. That I make written request for refund within thirty days after receiving official notice of my failure;

2. That I return all text material and my Certificate of Completion, together with my request for refund;

3. That within 15 days after sitting for examination, I have informed you of its title and date.

It is distinctly understood that refund will be made ~der no other conditions. 59154G~G--vol.38----35 Findings 38F. T. C.

PAR. 7. In truth and in fact, by concealing or failing to reveal pertinent facts, said refund provision has the tendency or capacity to mislead and deceive prospective students into the belief that the probabilities for obtaining appointments to Civil Service positions are greater than .they are in fact. It is not disclosed to said prospective students that examinations for certain positions may not be called for several years; or' that even if a student takes and passes an examination, his name may not be reached upon the eligible list for a number of years; nor is there any assurance that an appointment will be made although such student may have received an eligible rating ..

PAR. 8. The name "Commonwealth Training Institute" under which respondent conducts his said business is misleading in that it represents or implies to prospective students that respondent conducts an institution of learning with a staff of competent, experienced and qualified educators, and that his school is an extensive institution offering training and instruction in philosophy, art, science and other learned subjects; and to further such impression, respondent employs such terms as "Department of Education," "Department of Administration," "Muniment" of Matriculation" and other terms implying the existence of a substantial resident institution.

In truth and in fact respondent, offers only one course of study and instruction in the lower level types of examinations, which is substantially the same regardless of the Civil Service examination for which his said students wish to prepare. Respondent, in the conduct of his said business, does not offer training or instruction in philosophy, art, science or other learned subjects. No basic or thorough or complete instruction is given in any subject of learning and said school is not an institution. of learning in the accepted sense of that term .. There is no faculty of learned persons engaged in teaching resident students the method of ins.truction consisting in the mailing of previously prepared sheets and the grading of papers by the employees of respondent. All of the material used in connection with said courses of study and instruction is purchased by respondent from various publishers.

PAR. 9. The representations of i·respondent, as aforesaid, have had and now have the tendency and capacity to confuse, mislead and deceive members of the public into the erroneous and mistaken belief that such representations are true and to induce a substantial number thereof to purchase respondent's courses of study and instruction and pursue. the same on account thereof.

PAR. 10. The aforesaid acts and practices of the respondent, ~s herein alleged, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on December 30, 1942, issued and subsequently served its complaint in this proceeding upon the respondent, Nathan I. Goldberg, an individual, trading as Commonwealth Training Institute, charging him with the use of unfair and deceptive acts and COMMONWEALTH TRAINING INSTITUTE 507 503 Findings practices in commerce in violation of the provisions of said act. On February 8, 1943, the respondent filed his answer, in which he admitted all the material allegations of fact set forth in said complaint and waived all intervening procedure and further hearing as to said facts. Thereafter, the proceeding regularly came on for final hearing before the Commission on the said complaint and the answer thereto; and the Commission, hav- , ing duly considered the m:1tter and being now fully advised in the premises, finds that. this proceeding is in the interest of the public and makes this its findings as to the facts and its conclusion drawn therefrom. . FINDINGS AS TO THEJ FACTS . I PARAGRAPH 1. Respondent, Nathan I. Goldberg, is an individual, trading and doing business under the firm name and style of Commonwealth Training Institute, with his principal office and place of business at 120 Front Street, ·worcester, Mass. . PAR. 2. Respondent is now, and has been for more than two years last past, engaged in the sale and distribution in commerce between and among the various States of the United States of courses of study and instruction intended for preparing students thereof for examinations for certain Civil Service positions in the United States Government, which said courses are pursued by correspondence through the medium of the United States mails. Respondent, in the course and conduct of said business during the time aforesaid, caused and does now cause his said courses of study and instruction to be transported from his said place of business in the State of Massachusetts to, into, and through States of the United States other than Massachusetts to the purchasers thereof in such other States.

PAR. 3. In the 13ale of said courses of study and instruction respondent makes use of printed advertising matter mailed or distributed to prospective students in many States of the United States in and by which various misleading representations are made in regard to said courses or matters and things connected therewith. · Among such misleading. representations are those which represent or imply that respondent can offer positions in the United States Government which are under his control and which can be secured by taking respondent's courses. Typical of such representations are the following: , Subject: Government Jobs Federal-State---Municipal • * * • * * We will advise you free of charge how to qualify for a Government job.

* • * * * • Over 1700 Different Classifications of U.S. , Civil Service Jobs.

* * * * • * Findings ·38F. T. C.

Partial List Tilustrating Various Positions Railway Postal Clerk Immigration Patrol Inspector City-Mail Carrier Bookkeeper Post Office Clerk Customs Inspector Rural (motor) carrier Forest & Field Clerk Clerical-filing Typist Statistical Clerk Stenographer _Watchman-Guard Laborer Storekeeper--Gauger Customs Patrol Inspector Student fingerprint classifier Positions either in Washington, D; C., or in most cases throughout the United States. PAR. 4: By· means of statements and representations made by agents and representatives of the respondent who are designated "Registrars" and who call upon prospective students, the respondent represents to such prospective students that he can offer positions in the United States Government which are under his control or which he can secure for students taking his courses; that he and his school are connected with the United States Government and authorized by the United States Civil Service Commission to qualify applicants for Government jobs; that the applicants for respondent's courses of training are specially selected; that vacancies exist in certain branches of the United States Government which can be filled immediately after an applicant has passed the examination with r~spect to such positions.

PAR. 5. All of such statements and representations are false, misleading, and deceptive. In truth and in fact, respondent has no positions to offer and cannot qualify any one for a Government job; said partial list of various positions enumerated by respondent contains many positions in which no open competitive examinations have been announced for a number of years; respondent has no connection whatever with the Government of the United States or any branch thereof, and cannot guarantee positions or appointments of persons who have passed examinations. Applicants for courses of study are not specially selected, but generally all who apply for the courses of instruction are accepteel. by the respondent. In many instances where respondent's agents have represented that vacancies exist, such positions have either been abolished or the vacancies have in fact been supplied. In many other instances even though the student may successfully pass a Civil Service examination and be placed on the eligible list he may not be given employment for a considerable _period of time. Respondent's representatives are merely salesmen and the designation of such salesmen as "Registrars" further tends to mislead prospective students into the belief that they are officials of the Civil Service Commission.

PAR. 6. The name "Commonwealth Training Institute," under which respondent conducts his said business, is misleading in that it t·represents or implies to prospective students that respondent conducts an institution of learning with a staff of competent, experienced, and qualified educators, and that his school is an extensive institution offering training and instructions in philosophy, art, science, and other learned subjects; and to further such impression respondent employs such terms as "Department of Education," "Department of Administration," "Muniment of Matriculation," and other terms implying the existence of a substantial resident instit~tion.

COMMONWEAL'l'I-I TRAINING INSTITUTE 509 503 Order In truth and in fact, respondent offers only one course of study and instruction in the lower level types of examinations, which is substantially the same regardless of the Civil Service examination for which his said students wish to prepare. Respondent, in the conduct of his said business, does not offer training or instruction in philosophy, art, science, or other learned subjects. No basic or thorough or complete instruction is given in any subject of learning and said school is not an institution of learning in the accepted sense of that term. There is no faculty of learned persons engaged in teaching resident students, the method of instruction consisting of the mailing of previously prepared sheets and the grading of papers by the ell).ployees of respondent. All of the material used in connection with said course of study and instruction is purchased by respondent from various publishers. · PAR. 7. The representations of respondent, as aforesaid, have had, and now have, the tendency and capacity to confuse, mislead, and deceive members of the public into the erroneous and mistaken belief that such representations are true and to induce a substantial number thereof to purchase respondent's courses of study and instruction and pursue the same on account thereof. - CONCLUSION The aforesaid acts and practices of the respondent, as herein found, are all to the prejudice and injury of the public and constitute unfair and / deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

ORDER TO CEASE AND' DESIST This proceeding )laving been heard by the Federal Trade Commission Upon the complaint of the Commission and the answer of respondent, in which answer respondent admits all the material allegations of fact set forth in said complaint and states that he waives all intervening procedure and further hearing as to the said facts, and the Commission having made its findings as to the facts and its conclusion that said respondent has violated the provisions of the Federal Trade Commission Act. · · . It is ordered, That respondent, Nathan I. Goldberg, an individual, trad- Ing as Commonwealth Training Institute, or under any other name or designation, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of correspondence ?OUrses of study and instruction in commerce, as "commerce" is defined 1n the Federal Trade Commission Act, do forthwith cease and desist from, directly or by implication: · 1. Representing that respondent controls or will offer or procure the offer of Government jobs to his students. · 2. Representing that positions are open in all the branches of the United States Civil Service for which instruction is offered. , 3. Representing that respondent has any connection with the Govern- :tnent of the United States or any branch thereof. 4. Representing that appointments to positions in the Civil Service :tnay or can be secured through respondent.

Order 38 F. T.,C.

5. Representing that applicants or prospective purchasers of said courses of study are especially selected.

6. Representing that vacancies exist for Civil Service positions which have in fact been abolished or which have been filled. 7. Representing that respondent's representatives and salesmen are registrars. ' 8. Using the term "Institute" as part of the name under which respondent's business of selling courses of instruction is conducted, or using the term "Institute" in any manner to designate, describe, or refer to respondent's business.

It is further ordered, That respondent shall, within 60 days after service upon him of this order, file with the Commission a report in writing setting forth in detail the manner and form in which he has r complied with this order. " NATIONAL TECHNICAL INSTITUTE 511 Syllabus