National College of Audiometry

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IN THE MATTER OF NATIONAL COLLEGE OF AUDIO~1ETRY ET AL.

COMPLAINT, FINDINGS, AND ORDERS IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26 , 1914 Docket 5917. Com.pl-ain. , Aug. 1"1, 1951-Deci.8i.on Apr. , 1952 A college, as that term is understood in the educational field and b;y the general public, is an institution of higher learning, including subjects in the arts, sciences and professions-such as law, medicine and theology-laboratories, libraries, and dormitories for resident students, with sufficient financial resources to operate and maintain such an institution; and with an adequate and competent facult~' of learned persons qualified and trained to teach the respective subjects offered, and possessing degrees from recognized universities and colleges.

A degree is an academic rank recognized by colleges and universities having reputable character as institutions of higher learning and recognized as such by standard aecrediting organizations, which conveys to the ordinary mind the idea of some collegiate, university~. or scholastic distinction. Academic degrees are conferred by dul~' authorized, accredited and recognized educational institutions of higher learning as evidence and in recognition of prescribed scholastic attainments by students of such institutions, and, unless so earned and conferred, do not constitute degrees in the accepted meaning of the term. Moreover, degrees granted solely for work done by correspondence are not accredited and recognized by colleges and universities or by examining boards of the different professions. Where a corporation and its president, engaged in the interstate sale and distribution of a correspondence course in audiometry or the fitting of hearing aids; in circulars distributed to prospective students, and advertisements in various magazines of national circulation devoted to the healing arts- (a) Represented, directly or by implication, that said corporation was a recognized and accredited college or institution of higher learning; The facts being that it had none of the facilities, equipment, or faculty possessed by such institutions, but was operated by said individual who also constituted its faculty;

(b) Represented that said individual was a holder of a number of degrees pertaining to the subject of audiometry; that their course included basic physics, anatomy, physiology and pathology of the ear, the psychology of hearing, the physics of sound, abnormal psychology, etiology and pathology of diseases of the ear, and the fitting of hearing aids; and that students , might obtain either the degree of Bachelor of Science in Audiometry or Doctor of Audiometry;The facts being that the degree of "Doctor of Audiometry" is not known, accepted or recognized by reputable schools and colleges and is wholly without validity, and, insofar as said individual was concerned, was conferred by him upon himself; while said individual did possess the earned degree of Doctor of Optometry, and the honorary degree of Doctor of Optometric Science, he was not qualified bj' training or experience to teach either general anatomy or physiology, or the specific anatomy, ph~'siology and pathology Complaint 48 F. T. C. of the human ear, or any other subject in medical science with the exception of optometry, in which he had had training and experience; and while it is necessary to receive certain practical training, it is not necessary to acquire any academic degrees in order to fit hearing aids properly; and (c) Falsely represented that the aforesaid corporation ,,-as accepted or recognized by the Treasury Department of the United States as a non-profit educa tional insti tu tion ;

With tendency and capacity to confuse, mislead and deceive a substantial portion of the purchasing public with respect to their school and its courses and their purported academic degrees; and thereby to cause such public to purchase their course:

R al d, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public and constituted unfflir and decepti veacts and practices in commerce.

Before .L1b'. lViZliam L. Pack hearing examiner. 1//'1' . Williaf/n L. Pe' ncke for the Commission. M?,. John S. Kc/;Vancm-gh of Chicago, Ill., for respondents. CO:M:PLAINT Pursuant to the provisions of the Federal Trade Commission Act~ and L.y virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that National College of Audiometry, a corporation, and Frank Kee. , hereinafter referred to as respondents, have violated the provisions of 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: p AHA GRAPH 1. Respondent National College of Audiometry is corporation, organized, existing and doing business under and hy virtue of the laws of the State of Illinois. Respondent Frank n::eefe is the president of said corporate respondent and as such, formulates, controls, and directs the policies and practices of said Corporation and is responsible for the operation and management thereof. The office and principal place of business of both respondents located at 5024 North Broadway in the city of Chicago and State of Illinois.

. PAR. 2. Respondents are now, and for more than two years last past have been engaged in the sale and distribution in commerce between and among the various States of the United States of a course of study and instructiol1 in audiometry or the art of fitting hearing aids, which is pursued by correspondence through the medium of the United States mails.

During the time aforesaid respondents have caused and do now cause their said course of study and instruction to be transported NATIONAL COLLEGE OF AUDIOMETRY ET AL. 1151 1149 Complaint from their said place of business in the State or Illinois to purchasers the-reof located in various States or the United States other than the State of Illinois. ' The conduct of said business contemplates and results in, and has resulted in the transportation or lesson sheets and other documents money orders, checks and other forms or money, from respondents~ place or business in Illinois, through and into other States and from respondents' customers located in various States into the State of Illinois. There is now and has been at all times mentioned herein, a course or trade in said course or instruction so sold and distributed by said respondents in commerce between and among the various States of the United States, and such course or trade has been and is substantial.

PAR. 3. A college, as that term is understood in the educational field and by the general public, is an institution or higher learning, including subjects in the arts, se-iences and professions, such as law medicine and theology, with adequate equipment in the form or buildings, laboratories, libra.ries and dormitories for resident students, and sufficient financial resources to operate and maintain such institution; with an adequate and competent faculty of learned persons qualified and trained to teach the respective subjects offered by such institutions and possessing degrees from recognized universities and colleges.

A degree is an academic rank recognized by colleges and universities having a reputable character as institutions or higher learning and which are so recognized and accredited by standard accrediting organizations, and which degree conveys to the ordinary mind the idea of some collegiate, university or scholastic distinction. PAR. 4. Respondents, in soliciting the sale or and in selling said course of study and instruction in audiometry, have made and are making use of printed advertising matter including circulars mailed and distributed to prospective students located in the various States the United Sttaes, and of advertisements inserted in various magazines devoted to the healing arts and having a national circulation in and by which numerous representations have been and are made in regard to said course of study and matters and things connected therewith. Typical of such representations are the following: National College of Audiometry.

Frank Keefe, O. D., D. O. S., D. A., President. This program deals with Basic Physics. with the Anatomy. Physiology and Pathology of the human ear; the Psychology of hearing and the Physics of Sound. with audiometry. the measurement of hearing loss and the proper prescription of an individual hearing aid.

It desired a D. A. (Doctor of Audiometry) Degree or a Bachelor of Science in Audiometry will be awarded without further payment. 213840--54---- . .

Complaint 48 F. T. C.

Hearing Aid Consultants-Do You Know That THE NATIONAL COLLEGE OF AUDIOMETRY is chartered as a non-profit Educational Institution under the laws of the State of Illinois;

Is accepted as a non-profit educational institution by the Treasury Department of the United States;

Is the only institution of its kind (as far as we know) which teaches the complete science of audiometry;

The anatomy, physiology and patholog~' of the human ear; General, abnormal psychology and the psychology of hearing; general pathology and the etiology and pathology of diseases of the ear; the physics of sound and audiometry which is the measurement of the ability to hear; and the proper fitting of hearing aids; Has the power to confer degrees in Audiometry upon graduation through home study course by correspondence.

A LARGER INCOl\IE assured because of more satisfied patients' A greater PERSONAL satisfaction because of more education. PAR. 5. By means of the foregoing representations and others of similar import and effect not herein specifically set out, respondents have represented and implied and do represent and imply that the corporate respondent is a recognized and accredited college or institution of higher learning in \which is taught the science of audiometry that the president, Frank Keefe, is the holder of a number of degrees pertaining to the subject of audiometry, that the course or study and instruction by correspondence ine1ndes basic physics, anatomy, physiology and pathology of the ear, the psychology of hearing, and the physics of sound; abnormal psychology, etiology, and pathology diseases of the ear and the fitting or hearing aids; that students may obtain either the degree of Bachelor or Science in Audiometry Doctor of Audiometry, the latter indicated by the letters D. A;; that they are assured or a larger income and greater personal satisfaction by reason of having taken said course of instruction and that the Treasury Department of the United States accepts said corporate respondent as' a non-profit educational institution. PAR. 6. All of the foregoing statements and representations, and others similar thereto, are false, deceptive and misleading. In truth and in fact the corporate respondent is not a college in the accepted sense of that tenll and is not a recognized accredited and accepted. institution or higher learning: It has none of the facilities, equipment., or faculty described in Paragraph Three hereof but on the COIl- . trary, is openited by respondent Frank Keefe who ' also constitutes' the faculty. The lette-rs "0. D." and "D. O. S." used by said respondent signify that he is a Doctor of Optometry and an Honorary Doctor of Optometric Science. The degree "Doctor of Audiometry" is not known, accepted or recognized by reputable schools and colleges, and is of no validity whatever, and moreover, insofar as respondent is concerned was conferred by him upon himself. ;:; ; , NATIONAL COLLEGE OF AUDIOMETRY ET AL. 1153 l14fJ Decision Said respondent Frank Keefe is not qualified by training or experience adequately to teach either the fundamental and general subjects of anatomy and physiology, nor the specific subjects of anatomy, physiology and pathology of the human ear, nor psyc.hology, abnormal psychology, or any other subject dealing with medic.al science, with the exception" of optometry or the sciplltific examination of the eyes for the purpose of fitting glasses, in which said respondent has had training and experience. 'Vhile it is necessary to receive certain practical training in connection with th~ fitting of hearing aids, it is not necessary to have extensive training in medical science nor is it necessary to acquire any academic degrees in order to fit hearing aids properly to persons in need of such equipme-ilt. , The. Treasury Department of the United States has not accepted said corporate respondent as a non-profit educational institution with the implication that such acceptance means a recognition and approval of the educational qualifications of said school by an agency of the United States Government. In truth and in fact, the Treasury Department has merely accepted the existence of said corporate respondent as a non-profit institution in connection with its tax records.

PAR. 7. Academic. degrees as defined in Paragraph Three hereof are conferred by duly authorized, accredited and recognized educational institutions of higher learning as evidence and in recognition of presc.ribed, scholastic. attendance by students of such institutions and unless so. earned and c.onferred, do not constitute degrees in the accepted meaning of said terms; moreover degrees" granted solely for work done by correspondence are not accredited and recognized colleges and universities or by examining boards of the different professions.

PAR. 8. The practices and use by respondents of the statements and representations aforesaid have had and now have the tendency and capacity to anddo confuse, mislead and deceive members of the public into the erroneous and mistaken belief that such statements and representations are true, and to induce th~m to purchase respondents c.ourses of study and instruction in said commerce on account thereof. PAR. 9. The aforesaid acts andpraetices of respondents, as herein , alleged, are allto the prejudjee and injury ~f the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. DECISION OF THE COMMISSION Pursuant to Rule XXII of the Commission s Rules of Practice, and as set forth in the Commission Decision of the Commission and Order to File Report of Compliance, dated April 7, 1952, the initial Findings 48 F. T. C.

decision in the instant matter of hearing examiner 'Villiam L. Pack as set out as follo\Ys, became on that date the Commission. decision of the INITIAL DECISION BY WILLIAM L. PACK, HEARlXG EXAl\HNER Pursuant to the provisions of the Federal Trade Con;mission Act the Federal Trade Commission on August 17, 1951, issued and subsequently served its complaint in this proceeding upon the respondents named in the caption hereof, charging thenl with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of that Act. After the filing by respondents of their answer to the cOlnplaint, a hearing was held before the above named hearing examiner, theretofore duly designated by the Commission, at which a stipulation of facts was entered into by counsel supporting the complaint and counsel for respondents and incorporated in the record which was duly filed in the office of the Commission. The stipulation provided that the facts set forth therein should constitute the statement as to the facts in the proceeding, and be the basis for findings as to the facts and conclusion and an order disposing of the proceeding. Thereafter, the proceeding regularly came on for final consideration by the hearing examiner upon the complaint, answer and stipulation (the stipulation having been approved by the hearing examiner) (counsel having elected not to submit proposed findings and conclusions for consideration by the hearing examiner or to argue the matter orally), and the hearing examiner, having duly considered the matter finds that this proceeding is in the interest of the public and makes the following findings as to the facts, conelusion drawn therefrom and order:

FINDINGS AS TO TI-IE FACTS PARAGRAPH 1. Respondent National College of Audiometry is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois. Respondent Frank I(eefe is president of the corporation and formulates, controls and directs its policies and practices and is responsible for its operation and management. The office and principal place of business of both respondents was formerly located in Antioch, Illinois, but is presently located at 5204 North Broadway, Chicago, Illinois. Respondents are engaged in the sale and distribution of a course of study and instruction in audiometry or the att of fitting hearing aids, the course being pursued by correspondence tln ough the medium of the United States mails.

NATIONAL COLLEGE OF AUDIOMETRY ET AL. 1155 1149 Findings PAR. 2. Respolldents c.cause and have caused their course of study places ofand instruction, when sold, to be transported from their business in the State of Illinois to purchasers located in various other States of the United States. Respondents maintain and have maintained a course of trade in their course of study and instruction in commerce between and among various States of the United States. PAn. 3. A college, as that term is understood in the educational field and by the general public, is an institution of higher learning, including subjects in the arts, scienees and professions, such as law, medicine and theology, with adequate equipment in the form of buildings laboratories, libraries, and dormitories for resident students, and with sufficient financial resources to operate and maintain such an institution; and with an adequate and competent faculty of learned persons qualified and trained to teach the respective snbjec.tsoffered by such institutions and possessing degrees frani recognized, universities and colleges.

A degree is an academic rank recognized by colleges and universities having a reputable character as institutions of higher learning and which are so recognized and accredited by standard aecrediting organizations, and which degree conveys to the ordinary mind the idea of some collegiate, university or scholastic distinction. PAR. 4. In soliciting the sale of their course of study and instruction respondents make use of printed advertising material, including circulars, mailed and otherwise distributed to prospective students, and of advertisements inserted in various magazines devoted to the healing arts and having a national circulation. Among and typical of the statements appearing in respondents' advertising are the following: National College of Audiometry.

Frank Keefe, O. D., D. O. S., D. A. President. This program deals with Basic Physics, with the Anatom:y, Physiology and Pathology of the human ear; the Ps~'cholog~' of hearing and the Ph~'sics of Sound, with audiometry, the measurement of hearing loss and the proper prescription of an individual hearing aid.

If desired a D. A. (Doctor of Audiometry) Degree or a Bachelor of Science in Audiometry will be awarded without further payment. Hearing Aid Consultant-Do You Know That THE NATIONAL COLLEGE OF AUDIOMETRY is charted as a non-profit Educational Institution under the laws of the State of Illinois;

Is accepted as a non-profit educational institution by the Treasury Department of the United States; Is the only institution of its kind (as far as know) which teaches the complete science of audiometry; The anatomy, ph~'siology and pathology of the human ear; General, abnormal psychology and the psychology of hearing; general pathology and the etiology and patholog:V of diseases of the ear; the physics of sound and audiometry which is the measurement of the ability to hear; and the proper fitting of hearing aids;

1156 FEDERAL TRADE COl\1:MISSION Decisions Findings 48 F. T. C..

Has the power to confer degrees in Audiometry upon graduation through home study course by correspondence.

A LARGER INCOME assured because of more satisfied patients. A greater PERSONAL satisfaction because of more education. PAR. 5. Through the use of these statements and others of similar import, respondents have represented, directly or by implication that the corporate respondent is a recognized and accrediteel college or institution of higher learning in which is taught the science of audiometry; that the individual respondent is the holder of a number of degrees pertaining to the subject. ofal1diometry; that the course of study and instruction includes basic physics~ anatomy, physiology and pathology of the ear, the . psychology of hearing, the physics of sound, abnormal psychology, etiology, and pathology of diseases of the ear, and the fitting of he,aring aids; that students may obtain either the degree of Bachelor of Science in Audiometry or Doctor Audiometry, the latter being indicated by the letters D. A.; that students are assured of a larger income and greater personal satisfaction by reason of having taken such course of instruction; and that the corporate respondent is accepted or recognized by the. Treasury Department of the Uniteel States as a non-profit educational institution.

PAR. 6. These representations are erroneous and misleading. The corporate respondent is not in fact a. college in the accepted sense of that term, and is not a rec.ognized, accredited and accepted institution of higher learning. It has none of the facilities, equipment, or faculty described in Paragraph Three hereof but, on the contrary, is operated by the individual respondent who also constitutes the faculty. The letters " '~ and "D. O. S. " used by such respondent signify that he is a Doctor of Optometry and an Honorary Doctor of Optometric Science. The degree "Doctor of Audiometry" is not known, accepted, or recognized by reputable schools and colleges, is wholly without validity, and insofar as the individual respondent is concerned, the degree was conferred by him upon himself.

The individual respondent does possess the earned degree of Doctor of Optometry and is also the. possessor of the honorary degree of Doctor of Optometric Science. He is not, however, qualified by training or experience adequately to teach either the fundamental or general subjects of anatomy or physiology, nor the specific subjects of anatomy, physiology and pathology of the human ear, nor is he qualified to teach psychology, abnormal psyehology~ or any other subjert in medical seienee, with the exception of optometry or the scientific examination of the eyes for the purpose of fitting glasses, in which subject he has had training and experience. 1Vhile it is neces- NATIONAL COLLEGE OF AUDIOMETRY ET AL. 1157' 1149 Order sary to receive certain practical training in connection with the fitting of hearing aids, it is not necessary to have extensive training in medical science nor is it necessary to acquire any academic degree in order to fit hearing aids properly. The. Treasury Department of the United States has not recognized or accepted respondents' school as a non-profit educational institution.

PAR. 7. Academic degrees as defined in Paragraph Three hereof are conferred by duly authorized, accredited and recognized educational institutions of higher learning as evidence and in recognition of prescribed scholastic attainments by students of such institutions and unless so earned and conferred, do not constitute degrees in the accepted meaning of the term. ~10re6ver, degrees granted solely ' for work done by correspondence are not accredited and recognized colleges and universities 0'1' by exmnining boards of the different professions.

PAR. 8. The record indicates that much of the advertising in question has already been discontinued by respondents. PAR. 9. The acts and practices of respondents, as described above have the tendency and capacity to confuse, mislead and deceive a. substantial portion of the purchasing public with respect to respondents school and its course of study and instruction and the purported academic degrees conferred by it, and the tendency and capaeity to cause such portion of the public to purchase respondents' course of study and instruction as a result of the erroneous and mistaken belief so e11gende.re.

CONCLUSION The acts and practices of respondents as here,inabove set out are all to the prejudice of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Fed- ~ra.1 Trade Commission Act.

ORDER It i8 m'dered That the respondents, National College of Audiometry, a corporation, and its officers, and Frank I(eefe, individually and as an officer of said corporation, and respondents' agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution in commerce., as "commerce" is defined in the Federal Trade Commission Act, of respondents' course of study and instruction, do forthwith cease and desist from:

1. Representing by offering to grant or confer or through granting or conferring upon purchasers of respondents~ course of home study Order 48 F. T. C. and instruction through correspondence any so-called academic degrees, or by any other lneans, that corporate respondent is an accredited and standard college or institution of higher learning. 2. Using the word "college" or any abbreviation or simulation thereof, to designate, describe or refer to respondents' school; or otherwise representing directly or by implication, that the business conducted by respondents is a college or institution of higher learning. 3. Representing, directly or by implication, that respondent Frank Keefe is the holder of any accredited and recognized academic degrees pertaining to the subject of audiometry.

4. Representing that respondents' school is recognized and accepted or approved as a non-profit educational institution by the Treasury Department of the United Stares.

ORDER TO FILE REPORT OF COl\IPLIANCE I t is o1'de' That the respondents herein shall, wi thin sixty (60) days after service upon them of this order, file with the Commission a report in writing setting forth in detail the lUanneI' and form in which they have complied with the order to cease and desist (as reo quired by said declaratory decision and order of April 7, 1952J. , HAMILTON MANUFACTURING CO. 1159 Order