American Tractor Trailer Training, Inc

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF AMERICAN TRACTOR TRAILER TRAINING, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 902.5. Complainl, Apr. 197. Decision, Sept. , 197. Consent order requiring an East Hartford, Conn., truck driving school and its whollyowned subsidiary in Foxboro, Mass., among other things to cease using unfair and deceptive sales tactics in promoting their services. Appearances For the Commission: Martin J. Dolan, Jr. , David W. DiNardi and Charles M. LaDue.

, An inriictm nt valid on its face is not subject to challenge even on the g-round that the granrijury acted on the basis of informaLiof\ oblaif\ed in violatiof\ of a d,'femlaf\t " Fifth Amendment privilege. (/"i/",ISIQt"x . 81"" :1X U. 251 , 255 (l9f 6fJ' Complaint For the respondents: Gerald R. Lublin, Lublin Lublin East Hartford, Conn.

COMPLAINT Pursuant 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 American Tractor Trailer Training, Inc., American Tractor Trailer Training School, Inc. corporations, and Charles R. Schwab, individually and as an officer of said corporations, 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:

PARAGRAPH 1. Respondent American Tractor Trailer Training, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Connecticut, with its principal offce and place of business located at 178 Burnside Ave., in the City of East Hartford, Conn.

Respondent American Tractor Trailer Training School, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the Commonwealth of Massachusetts, with its principal office and place of business located at U.S. Route 1, in the town of Foxboro, Mass. It is a wholly-owned subsidiary of respondent American Tractor Trailer Training, Inc.

Respondent Charles R. Schwab is an offcer of the corporate respondents. He formulates, directs and controls the policies, acts and practices of the corporate respondents, including the acts and practices hereinafter set forth. His business address is the same as that of respondent American Tractor Trailer Training, Inc. The aforementioned respondents cooperate and act together in carrying out the acts and practices hereinafter set forth. PAR. 2. Respondents are now, and for some time last past have been engaged in the advertising, offering for sale, sale and distribution of training courses purporting to prepare graduates thereof for employment as truck drivers. Said courses, when pursued to completion consist of a series of lessons presented during a period of in-residence training at places designated by respondents. PAR. 3. In the course and conduct of their aforesaid business respondents have disseminated, and caused the dissemination of certain advertisements concerning the training courses by various means in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, including, but not limited to, advertise- Complaint 86 F.

ments inserted in newspapers of general interstate circulation and by means of commercial announcements over television and radio transmitted across State lines, and by means of brochures, pamphlets and other promotional materials disseminated through the United States mails, for the purpose of obtaining leads or prospects for the sale of such training courses, and for the purpose of inducing the purchase of such training courses.

Respondents, from their principal places of business located in Massachusetts and Connecticut, utilize the services of salesmen and cause said salesmen to visit prospective purchasers located in various other States who respond to the respondents' advertisements and commercial announcements for the purpose of inducing the purchase of such training courses by such prospective purchasers. Respondents transmit and receive, and cause to be transmitted and received, in the course of advertising, offering for sale, sale and distribution of such training courses, advertising and promotional materials, sales contracts, invoices, biling statements, checks, monies and other business papers and documents, to and from the several places of business operated by the respondents located as aforesaid and to prospective purchasers and purchasers thereof, located in various other States of the United States, other than the State of origination. Respondents maintain, and at all times mentioned herein have maintained, a substantial course of trade in said training courses in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 4. In the course and conduct of their business as aforesaid, for the purpose of obtaining leads or prospects for the sale of such training courses, and for the purpose of inducing the purchase of such training courses, respondents have made numerous statements and representations in newspaper advertisements, television and radio commercials business reply cards, brochures and other printed materials regarding job opportunities, wages, the qualifications of respondents' students who complete respondents' training courses, the nature of the training provided in respondents' training courses, the placement assistance furnished to respondents' graduates in obtaining employment, and other matters. Certain of the statements and representations have been placed by respondents in the "Help Wanted" columns of newspaper advertisements.

In the further course and conduct of their business as aforesaid respondents cause persons who respond to their newspaper advertisements, television and radio commercials and business reply cards to be visited by respondents' salesmen in the homes of such persons. For the purpose of inducing the sale of respondents' training courses ()() fj54 Complaint such salesmen make to prospective purchasers many statements and representations, directly or by implication, regarding job opportunities wages, the qualifications of respondents' students who complete respondents' training courses, the nature of the training provided in respondents' training courses, the placement assistance furnished to respondents' graduates in obtaining employment, and other matters. Some of the aforesaid statements and representations appear in brochures, pamphlets and other printed material furnished to said salesmen by respondents, and other statements and representations are made orally by said salesmen.

Typical and ilustrative, but not all inclusive, of said statements and representations relating to the hereinafter described truck driver training courses are the following:

A. Newspaper Advertisements.

MEN NEEDED To learn to drive tractor trailer. Fun or part-time training. Earn up to $314 per week with O.T. American Tractor Trailer Training, East Hartford, Connecticut, is approved for training veterans. Can 1-257-0111. No experience necessary, drive gas and diesel trucks. Budget plan available.

Learn To Drive Tractor Trailer 1. Earn $205 to $282 union scale with overtime. 2. Free pension plan, optical, dental and medical program. 10 paid holidays.

4. Up to 4 weeks paid vacation.

Attend American Tractor Trailer School full or part time on a short training program. APPROVED FOR VETERANS CALL ANYTIME 447-9776. LEARN TO DRIVE TRACTOR TRAILER You can Earn High Wages You Receive Placement Assistance You Train for Class: License Call AMERICAN TRACTOR TRAINING SCHOOL 1-603-889-471 NEED A FUTURE? DRIVE TRACTOR TRAILERS 1. Earn over weekly with 2. earn your Cla.o; 1 license 3. Attend full or part time days or evenings 4. Let American help you get a job after graduating AMERICAN TRACTOR TRAILER TRAINING, HARTFORD, CONNECTICUT Call Schenectady 439-4982 ANYTIME B. Business Reply Cards.

MEN! Get That Job Operating Tractor Trailers. Big Demand for Professional Drivers. Experienced Men Are Earning Up To $275 Per Week! American Trd.ctor Trailer Training, Inc. Can Train You To Operate This Equipment: H5H FEDERAL TRADE COMMISSION DECISIONS Complaint R6 F.

TradoT, Tran.,;rnisSI:0'nS Mack 15 Speed Tri-Plex GMC 5 Speed-2 Speed Axle White tO Speed Road Ranger Mack Du-Plex International 5 Speech, * * * Mail Card or Write * * * Find Out How You Can Qualify For A Top ,Job in the Trucking Imlustry! TRACTOR TRAILER TRAINING Professionally trained, highly skiled Tractor Trailer drivers are needed as never before. Drivers are currently earning $12 000 a year and up, and are protected by a multitude of benefits, including free optical, dental, and medical care. You can look forward to a secure, progressive future in a career that offers new horizons, challenges and accomplishments * * * Professional Placement Assistance * * * American Tractor Trailer Training School, Inc. C.S. StatementsRoute 1, Foxboro,fromMassachusettsBrochures.02023 The ever expanding use of Tractor-Trailers by both private industry and the transportation industry, creates a constant demand for better trained drivers. These drivers have an excellent income to provide their families with the pleasures of modern living * * * the policy of "American Tractor Trailer Training, Inc." has always been to personally interview all applicants in their homes to ascertin their qualifications and fitness for such training. Our local representative wil contact youshortJy to arrange a personal interview.

THE ENCLOSED QUALIFICATION SHEET MUST BE COMPLETED BEFORE OUR REPRESENTATIVE ARRIVES AT YOUR HOME. Tm; EXTRA TIME THIS SAVES WILL ENABLE HIM TO !JETTER EVALUATE YOUR QUALIFICATIONS FOR TRACTOR-TRAILER TRAINING.

Why do you want to establish yourself in the heavy trucking industry? * * * If accepted, can you devote a number of hours to your training? * * * After graduation would you prefer local employment, or if the conditions and locations were satisfactory, would you be wiling to relocate? * * * Can you accept employment imm( diately after completion of the training course? * * * Course Outline G. Road Instruction 4 hours (N 0 Traffic) H. Road Instruction 14 hours (Traffic) I. Final Road Test 2 hours D. (InOralTraffic)Statements by Sales Representatives. Truck drivers are making $14 000 to $22 000 a year. 654 Complaint After graduating, you can walk in anywhere and get a truck driver s job. The trucking field is crying for truck drivers. There are over 190 trucking companies who hire their truck drivers through American Tractor Trailer.

The course takes one month, and you ll be driving the second month. I only want to talk to individuals who are seriously interested in driving tractor trailers.

The school accepts only four out of every ten applicants. PAR. 5. By and through the use of the above statements and representations and others of similar import and meaning, but not expressly set out herein, respondents have represented, directly or by implication, that:

1. The corporate respondents operate, represent or are affiliated with, trucking companies.

2. Respondents offer employment to qualified applicants who will be trained as truck drivers.

3. Respondents have been requested by trucking companies to train drivers for jobs as truck drivers with such companies upon completion of said training.

4. Graduates of respondents' training courses will be qualified thereby for employment as truck drivers without further training or experience.

5. Respondents had a reasonable basis from which to conclude that there is now or wil be an urgent need or demand for persons who complete respondents' training courses.

6. Respondents had a reasonable basis from which to conclude that persons who complete respondents' training courses earn such amounts as $300 per week, or over $12 000 per year and other stated amounts as truck drivers.

7. Respondents provide a placement service which wil secure jobs as truck drivers for graduates of said courses who want to work in that capacity.

8. Graduates of respondents' training courses who want to work are assured jobs as truck drivers as a consequence of graduating from said courses.

9. Respondents' sales representatives are trained or qualified vocational counselors.

10. Respondents accept only qualified candidates for enrollment in said training courses.

11. Respondents' training courses provide a minimum of 20 hours of road-driving instruction.

PAR. 6. In truth and in fact:

1. The corporate respondents do not operate or represent, and are not affiliated with trucking companies.

Complaint 86 F.

2. Respondents do not offer employment to persons who wil be trained as truck drivers. The real purpose of such advertisements is to obtain leads to prospective purchasers of respondents' training courses. 3. Respondents have not been requested by trucking companies to train persons for jobs as truck drivers with such companies upon completion of said training.

4. Graduates of respondents' training courses are not thereby qualified for employment as truck drivers without further training or experience.

5. Respondents had no reasonable basis from which to conclude that there is now or will be an urgent need or demand for persons who complete respondents' training courses.

6. Respondents had no reasonable basis from which to conclude that persons who complete respondents' training courses earn amounts such as $300 per week, over $12 000 per year and other stated amounts as truck drivers as a result of such training. 7. Respondents do not provide a placement service which will secure jobs as truck drivers for graduates of said courses who want to work in that capacity.

8. Graduates of said courses who want to work are not assured jobs as truck drivers as a consequence of graduating from said courses. 9. Respondents' sales representatives are not trained or qualified vocational counselors. Respondents' representatives are commissioned salesmen who possess no special training, experience, title, qualifications or status.

10. Respondents accept all candidates for enrollment in said training courses. Respondents impose no qualifications on prospective enrollees and accept any person for enrollment in such courses who is wiling to execute a contract and pay the required tuition for the training courses.

11. Respondents' training courses do not provide a minimum of 20 hours of road-driving instruction. To the contrary, students receive substantially less road-driving instruction. Therefore, the statements and representations set forth in Paragraphs Four and ive hereof were, and are, false, misleading, unfair, or deceptive acts or practices.

PAR. 7. Through the use of the aforesaid advertisements, television and radio commercials, business reply cards, brochures and otherwise respondents have represented, directly or by implication, that there is or wil be an urgent need or demand for respondents' graduates in positions for which respondents train them and that respondents graduates earn such amounts as $300 per week, over $12 000 per year and other stated amounts as truck drivers. Respondents had at the (iG4 Complaint time of said representations no reasonable basis adequate to support the representations. Therefore, the aforesaid acts and practices were and are, unfair acts or practices.

PAR. 8. (a) In the course and conduct of their aforesaid business, and at all times mentioned herein, respondents have offered, and are now offering, for sale training courses purporting to prepare purchasers thereof for employment as truck drivers without disclosing in advertising or through their sales rcpresentatives: (1) the recent percentage of persons who have completed the training course who were able to obtain the employment for which they were trained; (2) the employers that hired any such persons; (3) the initial salary any such persons received; and (4) the percentage of recent enrollees of each school for each course offered that have failed to complete their course of instruction. Knowledge of such facts by prospective purchasers of respondents' training courses would indicate the possibility of securing future employment upon completion of the training courses, and the nature of such employment. Thus, respondents have failed to disclose a material fact which, if known to certain consumers, would be likely to affect their consideration of whether or not to purchase such training courses. Therefore, the aforesaid acts and practices were, and are, false, misleading, deceptive or unfair acts or practices.

(b) Respondents have offered, and are now offering, for sale training courses purporting to prepare purchasers thereof for employment as truck drivers without disclosing in advertising or through their sales representatives that:

1. Many employers of truck drivers prescribe a minimum age of twenty-one years of age for drivers;

2. Many employers of truck drivers give preferential consideration in hiring to driver-applicants who are twenty-five years of age or more because of insurance cost savings; and 3. Many employers of truck drivers give preferential consideration in hiring to driver-applicants with actual truck-driving experience. Knowledge of such facts by prospective purchasers of respondents training courses would indicate the possibilty of securng future employment upon completion of the training courses, and the nature of such employment. Thus, respondents have failed to disclose material facts which, if known to certain consumers, would be likely to affect their consideration of whether or not to purchase such training courses. Therefore, the aforesaid acts and practices were, and are, false misleading, deceptive or unfair acts or practices. PAR. 9. In the further course and conduct of their business and in the furtherance of their purpose of inducing prospective enrollees to 662 F'F.DERAL TRADE COMMISSION DECISIONS Complaint 86 F.

execute enrollment contracts for their training course, respondents and their employees, salesmen, and representatives have engaged in the following additional unfair, false, misleading and deceptive acts and practices.

In a substantial number of instances, through the use of the false misleading and deceptive statements, representations and practices set forth in Paragraphs Four through Eight, respondents or their representatives have been able to induce prospective enrollees into executing enrollment contracts upon initial contact without affording the enrollee sufficient time to carefully consider the purchase of the training course and the consequences thereof. PAR. 10. Respondents have been and are now failing to disclose material facts while using the aforesaid unfair, false, misleading or deceptive acts and practices, to induce person to payor to contract to pay over to them substantial sums of money to purchase or pay for courses of instruction whose value was virtually worthless to said persons for purposes of obtaining future employment in the jobs for which they were provided training.

Respondents have received the said sums and have failed to offer refunds and have failed to refund such sums to, or to rescind such contractual obligations of, substantial numbers of enrollees and participants in such training courses who were unable to secure employment in the positions and fields for which they have been purportedly trained by respondents.

The use by respondents of the aforesaid acts and practices, their continued retention of said sums and their continued failure to rescind such contractual obligations of their customers, as aforesaid, are unfair acts or practices.

The effect of using the aforesaid acts and practices to secure substantial sums of money is or may be to substantially hinder, lessen restrain, or prevent competition between respondents and the aforesaid competitors.

Therefore, the said acts and practices constitute an unfair method of competition in violation of Section 5 of the Federal Trade Commission Act.

PAR. 11. By and through the use of the aforesaid acts and practices respondents place in the hands of others the means and instrumentalities by and through which they may mislead and deceive the public in the manner and as to the things hereinabove alleged. . PAR. 12. In the course and conduct of their business, and at all times mentioned herein respondents have been, and now are, in substantial competition, in commerce, with corporations, firms, and individuals (jM Initial Decision engaged in the sale of training courses covering the same or similar subjects.

PAR. 13. The use by respondents of the aforesaid false, misleading, unfair or deceptive statements, representations, acts and practices and their failure to disclose material facts as aforesaid has had, and now has, the tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that said statements and representations were, and are, true and complete, and to induce a substantial number thereof to purchase respondents' training courses by reason of said erroneous and mistaken belief.

PAR. 14. The aforesaid acts and practices of respondents, as herein alleged, were and are all to the prejudice and injury of the public and respondents' competitors and constituted, and now constitute, unfair methods of competition in or affecting commerce and unfair or deceptive acts or practices in or affecting commerce in violation of Section 5 of the Federal Trade Commission Act. INITIAL DECISION BY DANIEL H. HANSCOM, ADMINISTRATIVE LAW JUDGE JULY 28, 1975 PRELIMINARY STATEMENT The Commission issued a complaint in this matter on Apr. 8 , 1975 charging American Tractor Trailer Training, Inc., American Tractor Trailer Training School, Inc. and Charles R. Schwab, individually and as an officer of said corporations, with unfair methods of competition in commerce in violation of Section 5 of the Federal Trade Commission Act.

The complaint and the accompanying notice order were served on American Tractor Trailer Training School, Inc. on May 14, 1975, and on American Tractor Trailer Training, Inc. and Charles R. Schwab on May , 1975.

No answer or other response was received from any of the respondents within thirty (30) days following service of the complaint as required by the Commission s Rules of Practice for Adjudicative Proceedings, nor by the later date of July 9, 1975, set by the administrative law judge (see order providing for reconsideration of default if answer is fied by July 9, 1975, issued .Tune 27, 1975, and order confirming default issued July 18, 1975).

Respondents are, therefore, in default and the undersigned so finds. Section 3.12(c) of the Commission s Rules of Practice provides that 217-1840 - 76 - 43 nitial Decision 86 F.

failure to file answer within the time provided shall be deemed to constitute waiver of the right of appearance and to contest the allegations of the complaint. Further, this Section authorizes the administrative law judge, without further notice to respondents, to find the facts to be as alleged in the complaint and to enter an initial decision containing such findings, appropriate conclusions, and order. Accordingly, the following findings, conclusions and order are issued: FINDINGS OF FACT PARAGRAPH 1. Respondent American Tractor Trailer Training, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Connecticut, with its principal office and place of business located at 178 Burnside Ave., in the City of East Hartford, Conn.

Respondent American Tractor Trailer Training School, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the Commonwealth of Massachusetts, with its principal offce and place of business located at U.S. Route 1, in the town of Foxboro, Mass. It is a wholly-owned subsidiary of respondent American Tractor Trailer Training, Inc.

Respondent Charles R. Schwab is an offcer of the corporate respondents. He formulates, directs and controls the policies, acts and practices of the corporate respondents, including the acts and practices hereinafter set forth. His business address is the same as that of respondent American Tractor Trailer Training, Inc. The aforementioned respondents cooperate and act together in carrying out the acts and practices hereinafter set forth. PAR. 2. Respondents are now, and for some time last past have been engaged in the advertising, offering for sale, sale and distribution of training courses purporting to prepare graduates thereof for employment as truck drivers. Said courses, when pursued to completion consist of a series of lessons presented during a period of in-residence training at places designated by respondents. PAR. 3. In the course and conduct of their aforesaid business respondents have disseminated, and caused the dissemination of certain advertisements concerning the training courses by various means in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, including, but not limited to, advertisements inserted in newspapers of general interstate circulation and by means of commercial announcements over television and radio transmitted across State lines, and by means of brochures, pamphlets and other promotional materials disseminated through the United States mails, for the purpose of obtaining leads or prospects for the sale AMERICAN TRACTOR TRAILER TRAINING. INC., ET AL. 665 G54 Initial Dccision of such training courses, and for the purpose of inducing the purchase of such training courses.

Respondents, from their principal places of business located in Massachusetts and Connecticut, utilze the services of salesmen and cause said salesmen to visit prospective purchasers located in various other States who respond to the respondents' advertisements and commercial announcements for the purpose of inducing the purchase of such training courses by such prospective purchasers. Respondents transmit and receive, and cause to be transmitted and received, in the course of advertising, offering for sale, sale and distribution of such training courses, advertising and promotional materials, sales contracts, invoices, biling statements, checks, monies and other business papers and documents, to and from the several places of business operated by the respondents located as aforesaid and to prospective purchasers and purchasers thereof, located in various other States of the United States, other than the State of origination. Respondents maintain, and at all times mentioned herein have maintained, a substantial course of trade in said training courses in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 4. In the course and conduct of their business as aforesaid, for the purpose of obtaining leads or prospects for the sale of such training courses, and for the purpose of inducing the purchase of such training courses, respondents have made numerous statements and representations in newspaper advertisements, television and radio commercials business reply cards, brochures and other printed materials regarding job opportunities, wages, the qualifications of respondents' students who complete respondents' training courses, the nature of the training provided in respondents' training courses, the placement assistance furnished to respondents' graduates in obtaining employment, and other matters. Certain of the statements and representations have been placed by respondents in the "Help Wanted" columns of newspaper advertisements.

In the further course and conduct of their business as aforesaid respondents cause persons who respond to their newspaper advertisements, television and radio commercials, and business reply cards to be visited by respondents' salesmen in the homes of such persons. For the purpose of inducing the sale of respondents' training courses such salesmen make to prospective purchasers many statements and representations, directly or by implication, regarding job opportunities wages, the qualifications of respondents' students who complete respondents' training courses, the nature of the training provided in respondents' training courses, the placement assistance furnished to Initial Decision 86 respondents' graduates in obtaining employment, and other matters. Some of the aforesaid statements and representations appear in brochures, pamphlets and other printed material furnished to said salesmen by respondents, and other statements and representations are made orally by said salesmen.

Typical and ilustrative, but not all inclusive, of said statements and representations relating to the hereinafter described truck driver training courses are the following:

A. Newspaper Advertisements, . MEN NEEDED To learn to drive tractor trailer. Full or part-time training. Earn up to $314 per week with D.T. American Tractor Trailer Training, East Hartford, Connecticut, is approved for training veterans. Call 1-257-0111. No experience necessary, drive gas and diesel trucks. Budget plan available.

Learn To Drive Tractor Trailer 1. Earn $205 to $282 union scale with overtime. 2. Free pension plan, optical, dental and medical program. 3. 10 paid holidays.

4. Up to 4 weeks paid vacatioIl.

Attend American Tractor Trailer School full or part time on a short training program. APPROVED FOR VETERANS CALL ANYTIME 447-9776. LEARN TO DRIVE TRACTOR TRAILER You can Earn High Wages You Receive Placement Assistance You Train for Class 3 License CALL AMERICAN TRACTOR TRAINING SCHOOL 1-603-889-4471 NEED A FUTURE? DRIVE TRACTOR TRAILERS 1. Earn over $300 weekly with O.

2. Earn your Class 1 license 3. Attend full or part time days or evenings 4. Let American help you get a job after graduating AMERICAN TRACTOR TRAILER TRAINING, HARTFORD, CONNECTICUT Call Schenectady 439-4982 ANYTIME B. Business Reply Cards.

MEN! Get That Job Operating Tractor Trailers. Big Demand for Professional Drivers. Experienced Men Are Earning Up To $275 Per Week! American Tractor Trailer Training, Inc. Can Train You To Operate This Equipment: Tractors Transm.issions Mack 15 Speed Tri-Plex GMC 5 Speed-2 Speed Axle 654 I nilial Decision White 10 Speed Road Ranger Mack Du-Plex International 5 Speeds * * * Mail Card or Write * * * Find Out How You Can Qualify For A Top Job in the Trucking Industry! TRACTOR TRAILER TRAINING Professionally trained, highly skilled Tractor Trailer drivers are needed as never before. Drivers are currently earning $12 000 a year and up, and are protected by a multitude of benefits, including free optical, dental, and medical care. You can look forward to a secure, progressive future in a career that offers new horizons, challenges and accomplishments * * * Professional Placement Assistance * * * American Tractor Trailer Training School, Inc. S. Route 1 , Foxboro, Massachusetts 02023 C. Statements from Brochures.

The ever expanding use of Tractor-Trailers by both private industry and the transportation industry, creates a constant demand for better trained drivers. These drivers have an excellent income to provide their families with the pleasures of modern living * * * the policy of "American Tractor Trailer Training, Inc." has always been to personally interview all applicants in their homes to ascertin their qualifications and fitness for such training. Our local representative wil contact you shortly to alTange a personal interview.

THE ENCLOSED QUALIFICATION SHEET MUST BE COMPLETED BE.' ORE OUR REPRESENTATIVE ARRIVES AT YOUR HOME. THE EXTRA TIME THIS SAVES WILL ENABLE HIM TO BETTER EVALUATE YOUR QUALIFICATIONS FOR TRACTOR-TRAILER TRAINING.

Why do you want to establish yourself in the heavy trucking industry? * * * If accepted, can you devote a number of hours to your training? * * * After graduation would you prefer local employment, or if the conditions and locations were satisfactory, would you be willing to relocate? * * * Can you accept employment immediately after completion of the training course? * * * Course Outline G. Road Instruction 4 hours (No Traffc) H. Road Instruction 14 hours (Traffc) I. Final Road Test 2 hours (In Traffc) D. Oral Statements by Sales Representatives. Truck drivers are making $14 00 to $22 00 a year. After graduating, you can walk in anywhere and get a truck driver s joh. The trucking field is crying for truck drivers. 6GB EDERAL TRADE COMMISSION DECISIONS Initial Decision 86 F. There are over 190 trucking companies who hire their truck drivers through American Tractor Trailer.

The course takes one month, and you ll be driving the second month. I only want to talk to individuals who are seriously interested in driving tractor trailers.

The school accepts only four out of every ten applicants. PAR. 5. By and through the use of the above statements and representations and others of similar import and meaning, but not expressly set out herein, respondents have represented, directly or by implication, that;

1. The corporate respondents operate, represent or are affiliated with, trucking companies.

2. Respondents offer employment to qualified applicants who wil be trained as truck drivers.

3. Respondents have been requested by trucking companies to train drivers for jobs as truck drivers with such companies upon completion of said training.

4. Graduates of respondents' training courses will be qualified thereby for employment as truck drivers without further training or experience.

5. Respondents had a reasonable basis from which to conclude that there is now or wil be an urgent need or demand for persons who complete respondents' training courses.

6. Respondents had a reasonable basis from which to conclude that persons who complete respondents' training courses earn such amounts as $300 per week, or over $12 000 per year and other stated amounts as truck drivers.

7. Respondents provide a placement service which wil secure jobs as truck drivers for graduates of said courses who want to work in that capacity.

8. Graduates of respondents' training courses who want to work are assured jobs as truck drivers as a consequence of graduating from said courses.

9. Respondents' sales representatives are trained or qualified vocational counselors.

10. Respondents accept only qualified candidates for enrollment in said training courses.

11. Respondents' training courses provide a minimum of 20 hours of road-driving instruction.

PAR. 6. In truth and in fact:

1. The corporate respondents do not operate or represent, and are not affiliated with trucking companies.

2. Respondents do not offer employment to persons who wil be 654 Initial Decision trained as truck drivers. The real purpose of such advertisements is to obtain leads to prospective purchasers of respondents' training courses. 3. Respondents have not been requested by trucking companies to train persons for jobs as truck drivers with such companies upon completion of said training.

4. Graduates of respondents' training courses are not thereby qualified for employment as truck drivers without further training or experience.

5. Respondents had no reasonable basis from which to conclude that there is now or wi1 be an urgent need or demand for persons who complete respondents' training courses.

6. Respondents had no reasonable basis from which to conclude that persons who complete respondents' training courses earn amounts such as $300 per week, over $12 000 per year and other stated amounts as truck drivers as a result of such training. 7. Respondents do not provide a placement service which will secure jobs as truck drivers for graduates of said courses who want to work in that capacity.

8. Graduates of said courses who want to work are not assured jobs as truck drivers as a consequence of graduating from said courses. 9. Respondents' sales representatives are not trained or qualified vocational counselors. Respondents' representatives are commissioned salesmen who possess no special training, experience, title, qualifcations or status.

10. Respondents accept all candidates for enrollment in said training courses. Respondents impose no qualifications on prospective enrollees and accept any person for enrollment in such courses who is willng to execute a contract and pay the required tuition for the training courses.

11. Respondents' training courses do not provide a minimum of 20 hours of road-driving instruction. To the contrary, students receive substantially less road-driving instruction. Therefore, the statements and representations set forth in Paragraphs Four and Five hereof were, and are, false, misleading, unfair, or deceptive acts or practices.

PAR. 7. Through the use of the aforesaid advertisements, television and radio commercials, business reply cards, brochures and otherwse respondents have represented, directly or by implication, that there is or wil be an urgent need or demand for respondents' graduates in positions for which respondents train them and that respondents graduates earn such amounts as $300 per week, over $12 000 per year and other stated amounts as truck drivers. Respondents had at the time of said representations no reasonable basis adequate to support Initial Decision 86 F. the representations. Therefore, the aforesaid acts and practices were and are, unfair acts or practices.

PAR. 8. (a) In the course and conduct of their aforesaid business, and at all times mentioned herein, respondents have offered, and are now offering, for sale training courses purporting to prepare purchasers thereof for employment as truck drivers without disclosing in advertising or through their sales representatives: (1) the recent percentage of persons who have completed the training course who were able to obtain the employment for which they were trained; (2) the employers that hired any such persons; (3) the initial salary any such persons received; and (4) the percentage of recent enrollees of each school for each course offered that have failed to complete their course of instruction. Knowledge of such facts by prospective purchasers of respondents' training courses would indicate the possibility of securing future employment upon completion of the training courses, and the nature of such employment. Thus, respondents have failed to disclose a material fact which, if known to certain consumers, would be likely to affect their consideration of whether or not to purchase such training courses. Therefore, the aforesaid acts and practices were, and are, false, misleading, deceptive or unfair acts or practices.

(b) Respondents have offered, and are now offering, for sale training courses purporting to prepare purchasers thereof for employment truck drivers without disclosing in advertising or through their sales representatives that:

1. Many employers of truck drivers prescribe a minimum age of twenty-one years for drivers;

2. Many employers of truck drivers give preferential consideration in hiring to driver-applicants who are twenty-five years of age or more because of insurance cost savings; and 3. Many employers of truck drivers give preferential consideration in hiring to driver-applicants with actual truck-driving experience. Knowledge of such facts by prospective purchasers of respondents training courses would indicate the possibility of securng future employment upon completion of the training courses, and the nature of such employment. Thus, respondents have failed to disclose material facts which, if known to certain consumers, would be likely to affect their consideration of whether or not to purchase such training courses. Therefore, the aforesaid acts and practices were, and are, false misleading, deceptive or unfair acts or practices. PAR. 9. In the further course and conduct of their business and in the furtherance of their purpose of inducing prospective enrollees to execute enrollment contracts for their training course, respondents and 654 Initial Decision their employees, salesmen, and representatives have engaged in the following additional unfair, false, misleading and deceptive acts and practices.

In a substantial number of instances, through the use of the false misleading and deceptive statements, representations and practices set forth in Paragraphs Four through Eight, respondents or their representatives have been able to induce prospective enrollees into executing enrollment contracts upon initial contact without affording the enrollee sufficient time to carefully consider the purchase of the training course and the consequences thereof. PAR. 10. Respondents have been and are now failing to disclose material facts while using the aforesaid unfair, false, misleading or deceptive acts and practices, to induce persons to payor to contract to pay over to them substantial sums of money to purchase or pay for courses of instruction whose value was virtually worthless to said persons for purposes of obtaining future employment in the jobs for which they were provided training. Respondents have received the said sums and have failed to offer refunds and have failed to refund such sums to, or to rescind such contractual obligations of, substantial numbers of enrollees and participants in such training courses who were unable to secure employment in the positions and fields for which they have been purportedly trained by respondents. The use by respondents of the aforesaid acts and practices, their continued retention of said sums and their continued failure to rescind such contractual obligations of their customers, as aforesaid, are unfair acts or practices.

The effect of using the aforesaid acts and practices to secure substantial sums of money is or may be to substantially hinder, lessen restrain, or prevent competition between respondents and the aforesaid competitors.

Therefore, the said acts and practices constitute an unfair method of competition in violation of Section 5 of the Federal Trade Commission Act.

PAR. 11. By and through the use of the aforesaid acts and practices respondents place in the hands of others the means and instrumentalities by and through which they may mislead and deceive the public in the manner and as to the things hereinabove alleged. PAR. 12. In the course and conduct of their business, and at all times mentioned herein, respondents have been, and now are, in substantial competition, in commerce, with corporations, firms, and individuals engaged in the sale of training courses covering the same or similar subjects.

PAR. 13. The use by respondents of the aforesaid false, misleading, (i72 FEDERAL TRADE COMMISSION DECISIONS Initial Decision 86 l'.

unfair or deceptive statements, representations, acts and practices and their failure to disclose material facts as aforesaid have had, and now have, the tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that said statements and representations were, and are, true and complete, and to induce a substantial number thereof to purchase respondents' training courses by reason of said erroneous and mistaken belief.

PAR. 14. The aforesaid acts and practices of respondents, as herein alleged, were and are all to the prejudice and injury of the public and respondents' competitors and constituted, and now constitute, unfair methods of competition in or affecting commerce and unfair or deceptive acts or practices in or affecting commerce in violation of Section 5 of the Federal Trade Commission Act. ORDER It is ordered That respondents American Tractor Trailer Training, Inc., American Tractor Trailer Training School, Inc., corporations, their successors and assigns, and their officers, and Charles R. Schwab individually and as an officer of said corporations, and respondents officers, agents, representatives, and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale or distribution of courses of study, training or instruction in the field of truck driving or any other subject, trade or vocation, or of any other product or service in or affecting commerce, as ucommerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Representing orally, visually, in writing or in any other manner directly or by implication, that:

(a) Respondents operate, represent or are affiiated with trucking companies, employers of truck drivers, or any industry for which enrollees of any course are being trained; or misrepresenting, in any manner, the nature of respondents' business. (b) Employment is being offered when the purpose of such offer is to obtain leads to prospective purchasers of such training courses. (c) Respondents have been requested by trucking companies or any other business or organization to train persons for specific jobs; or misrepresenting, in any manner, respondents' connection or affilation with any industry or any member thereof.

(d) Graduates of said courses wil be qualified thereby for employment as truck drivers without further aining or experience. AMERICAN TRACTOR TRAILER TRAINING, INC., ET AL. 67: fj54 Initial Decision (e) There is a need or demand of any size, proportion or magnitude for persons completing any of the courses offered by the respondents or otherwise representing that opportunities for employment, or opportunities of any size, figure or number are available to such persons, or that persons completing said courses wil or may earn any specified amount of money, or otherwise representing by any means the prospective earnings of such persons except as hereafter provided in Paragraph 6 of the order.

(f) Respondents or others provide a placement service which will or may secure a job for graduates of said courses. (g) Graduates of said courses are assured of placement in the positions for which they have been trained; or representing that graduates of said courses will easily attain employment or that said courses are effective in preparing or qualifying any graduate for employment.

(h) Any person engaged in the promotion, offering for sale, sale distribution or other use of said courses is a trained admissions counselor or vocational counselor; or misrepresenting the training, experience, title, qualifications or status of such person or the import or meaning of any advice given by or any other statement made by any such person.

(i) Respondents accept only qualified candidates for enrollment in said courses.

(j) Said courses provide a minimum of 20 hours of road-driving instruction, when such representations do not accurately disclose the actual number of hours of behind-the-wheel road-driving instruction furnished to enrollees; or misrepresenting, in any manner, the number of actual hours of behind-the-wheel road-driving instruction furnished to enrollees.

2. Placing advertisements in "Help Wanted" columns, or failing to specify, clearly and conspicuously, as a condition to the publication of classified advertisements seeking leads to prospective purchasers, that such advertisements be published only in the education, instruction or similar columns of classified advertising. 3. Failng to disclose, in writing, clearly and conspicuously, prior to the signing of any contract, to any prospective enrollee of any truck driver training course offered by respondents, the following information:

(a) The title "IMPORTANT INFORMATION" printed in ten (10) point bold face type across the top of the form. (b) Paragraphs providing the following information: (1) Many employers of truck drivers prescribe a minimum age of twenty-one (21) years for drivers.

Initial Decision 86 t'. (2) Many employers of truck drivers give preferential consideration in hiring to driver-applicants who are twenty-five (25) years of age. (8) Many employers of truck drivers give preferential consideration in hiring to driver-applicants with actual truck-driving experience. 4. Failing to disclose, clearly and conspicuously, in advertisements in catalogs, brochures and on letterheads, that respondents' business is solely and exclusively that of a private school, not affiiated with any members of the trucking industry or any member of any other industry.

5. Failng to keep adequate records which may be inspected by Commission staff members upon reasonable notice which substantiate the data and information required to be disclosed by Paragraph 6 of this order and prescribed in Appendix A hereto. 6. Failing to disclose, in writing, clearly and conspicuously, prior t.o the signing of any contract, to any prospective enrollee of any course of instruction offered by respondents, the following information in the format prescribed in Appendix A and for a base period designated as described in Appendix B hereto:

(1) The number and percentage of enrollees who have failed to complete their course of instruction, such percentage to be computed separately for each course of instruction offered by respondents at each school, location or facility;

(2) The placement rate, ratio or percentage for enrollees and graduates, and also the numbers upon which such rates, ratios or percentages are based; such rate or percentage to be computed separately for each course of instruction offered by respondents at each school, location or facility;

(8) The salary range of respondents' graduates as to the same graduates used to compute the placement percentage in (2) above; and (4) A list of firms or employers which are currently hiring graduates of said courses in substantial numbers and in the positions for which such graduates have been trained, and the number of such graduates hired, as to the same graduates used to compute the placement percentage in (2) above.

Provided, however This paragraph shall be inapplicable to any school newly established by respondents in a metropolitan area or county, whichever is larger, where they previously did not operate a school, or to any course newly introduced by respondents, unti such time as the new school or course has been in operation for the base period established pursuant to Appendix B as prescribed in this paragraph. However, during such period the following statement, and no other shall be made in lieu of the Appendix A disclosure form required by this paragraph:

654 Initial Decision DISCLOSURE NOTICE This school r or course, as the case may be) has not been in operation long enough to indicate what, if any, actual employment or salary may result upon graduation from this school I course).

7. (a) Contracting for the sale of any course of instruction in the form of a sales contract or any other agreement which does not contain in immediate proximity to the space reserved in the contract for the signature of the prospective enrollee in bold face type of a minimum size of ten (10) points, a statement in the following form: You, the prospective enrollee, may cancel this transaction at any time prior to midnight of the tenth business day after the date of this transaction. See attached notice of cancellation form for an explanation of this right. (b) Failing to furnish each prospective enrollee, at the time he signs the sales contract or otherwise agrees to enroll in a course of instruction offered by respondents, a complete form in duplicate, which shall be attached to the contract or agreement, and easily detachable and which shall contain in ten (10) point bold face type the following information and statements:

NOTICE OF CANCELLATION (enter date of transaction) (date) YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR OBLIGATION, WITIIN TEN (10) BUSINESS DAYS FROM THE ABOVE DATE. IF YOU CANCEL. ANY PA YMENTS MADE BY YOU UNDER THE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY YOU WILL BE RETURNED WITHIN TEN (10) BUSINESS DAYS FOLLOWING RECEIPT BY THE SELLER OF YOUR CANCELLATION NOTICE, AND ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE CANCELLED.

IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE SELLER AT YOUR RESIDENCE. IN SUBSTANTIALLY AS GOOD CONDITION AS WH RECEIVED, ANY GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR SALE; OR YOU MAY, IF YOU WISH, COMPLY WITH THE INSTRUCTIONS m' THE SELLER REGARDING THE RETURN SHIPMENT OF THE GOODS AT THE SELLER' S EXPENSE AND RISK.

IF YOU DO MAKE THE GOODS AVAILABLE TO THE SELLER AND THE SELLER DOES NOT PICK THEM UP WITHIN TWENTY (20) DAYS OF THE DATE OF YOUR NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT ANY FURTHER OBLIGATION. IF YOU F AIL TO MAKE THE GOODS A V AILABLE TO THE SELLER, OR IF YOU AGREE TO RETURN THE GOODS TO THE SELLER AND FAIL TO DO SO, THEN YOU REMAIN LIABLE FOR PA YMENT FOR SAID GOODS. TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE, OR SEND A TELEGRAM , TO (Name of sdlerl, AT 676 FJ.DERAL TRADE COMMISSION m:CISIONS Initial Decision 86 F. faddre:::; of seller s plan; of tJ''/sinessJ NOT LATER THAN MIDNIGHT OF (date).

I HEREBY CANCEL THIS TRANSACTION.

(Date) (Buyer s signature) (c) Failing to orally inform each prospective enrollee of his right to cancel at the time he signs a contract or agreement for the sale of any course of instruction.

(d) Misrepresenting in any manner the prospective enrollee s right to cancel.

(e) I"ailing or refusing to honor any valid notice of cancellation by a prospective enrollee and within ten (10) business days after the receipt of such notice, to: (i) refund all payments made under the contract or sale; (ii) return any goods or property traded in, in substantially as good condition as when received by respondents; (iii) cancel and return any negotiable instrument executed by the prospective enrollee in connection with the contract or sale.

(I) During the cancellation period described herein, respondents shall not initiate contacts with such contracting persons other than contacts permitted by this paragraph.

S. Making any representations of any kind whatsoever, which are not already proscribed by other provisions of this order, in connection with the advertising, promoting, offering for sale, sale or distribution of courses of study, training or instruction in the field of truck driver training or any other course offered to the public in any field in commerce, for which respondents have no reasonable basis prior to the making or dissemination thereof.

9. Furnishing or otherwise placing in the hands of others the means and instrumentalities by and through which the public may be misled or deceived in the manner, or by the acts and practices prohibited by this order.

It is furth.er ordered That:

(a) Respondents herein deliver, by registered mail, a copy of this decision and order to each of their present and future franchisees licensees, employees, sales representatives, agents, solicitors, brokers independent contractors or to any other person who promotes, offers for sale, sells or distributes any course of instruction included within the scope of this order.

(b) Respondents herein provide each person or entity so described in subparagraph (a) of this paragraph with a form returnable to the 654 Initial Deeision respondents clearly stating his or her intention to be bound by and to conform his or her business practices to the requirements of this order; retain said statement during the period said person or entity is so engaged; and make said statement available to the Commission s staff for inspection and copying upon request.

(c) Respondents herein inform each person or entity described in subparagraph (a) of this paragraph that the respondents will not use or engage or will terminate the use or engagement of any such party, unless such party agrees to and does fie notice with the respondents that he or she will be bound by the provisions contained in this order. (d) If such party as described in subparagraph (a) of this paragraph wil not agree to fie the notice set forth in subparagraph (b) above with the respondents and be bound by the provisions of this order, the respondents shall not use or engage or continue the use or engagement of such party to promote, offer for sale, sell or distribute any course of instruction included within the scope of this order. (e) Respondents herein inform the persons or entities described in subparagraph (a) above that the respondents are obligated by this order to discontinue dealing with or to terminate the use or engagement of persons or entities who continue on their own the deceptive acts or practices prohibited by this order. (f) Respondents herein institute a program of continuing surveilance adequate to reveal whether the business practices of each said person or entity described in subparagraph (a) above conform to the requirements of this order.

(g) Respondents herein discontinue dealing with or terminate the use or engagement of any person described in subparagraph (a) above, who continues on his or her own any act or practice prohibited by this order as revealed by the aforesaid program of surveilance. (h) Respondents herein maintain files containing all inquiries or complaints from any source relating to acts or practices prohibited by this order, for a period of two years after their receipt, and that such files be made available for examination by a duly authorized agent of the ~' ederal Trade Commission during the regular hours of the respondents' business for inspection and copying. It is further ordered That respondents herein present to each interested applicant or prospective student, immediately prior to the commencement of any interview or sales presentation, during which the purchase of or enrollment in any course of instruction offered by respondents herein is discussed or solicited, a 5" x 7" card containing only the following language:

678 FF.DERAL TRADE COMMISSION DECISIONS I nitial Decision 86 F. YOU WILL Br; TALKING TO A SALESPERSON It is further ordered That respondent corporations shall forthwith distribute a copy of this order to each of their operating divisions. It is further ordered That the respondent corporations shall notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondents such as dissolution, assignment, or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the respondents which may affect compliance obligations arising out of this order. It is further ordered That the individual respondent, Charles R. Schwab, promptly notify the Commission of the discontinuance of his present business or employment and of his affiiation with a new business or employment. Such notice shall include respondents' current business address and a statement as to the nature of the business or employment in which he is engaged, as well as a description of his duties and responsibilities.

(%) 654 Initial Decision APPENDIX A DISCLOSURE FORM (NAME OF SCHOOL) DROP OUT AND PLACEMENT RECORD FOR (NAME OF COURSE) FOR THE PERIOD OF (DATE) TO (DATE) I. TOTAL ENROLLEES (Number) 2. TOTAL WHO FAILED TO COMPLETE THE COURSE (Number) 3. PERCENTAGE WHO FAILEDTO COMPI,ETE THE COURSE 4. TOTAL NUMBER OF STUDENTS WHO OBTAINED EMPLOY- MENT IN THE POSITION FOR Which THIS COURSE OF STUDY PREPARED THEM (Number) 5. PERCENTAGE OF STUDENTS WHO OBTAINED EMPLOY- MENT IN THE POSITION FOR Which THIS COURSE OF STUDY PREPARED THEM (% of Enrollees J 6. PERCENTAGE OF GRADUATES WHO OBTAINED EMPLOY- MENT IN THE POSITION FOR Which This COURSE OF STUDY TRAINED THEM (% of Graduates J 7. NUMBER AND PERCENTAGE OF TOTAL ENROLLEES AND GRADUATES WHO OBTAINED EMPLOYMENT IN THE FOLLOWING SALARY RANGES:

Less than $2.50 Per Hour (Number) Students which is (%) of Total Graduates $2.50-$3.99 Per Hour $4.00- $5.50 Per Hour $5.51-$7.00 Per Hour More Than $7.00 Per Hour 8. EMPLOYERS HIRING PERSONS WHO GRADUATE FROM (NAME OF COURSE) FROM (DATE) TO (DATE) AS TRACTOR TRAILER DRIVERS Total Number of Names of Employers Graduates Hired 217-1B4 0 - 76 - 44 Final Order 86 F.

Appendix B Base period" shall mean that period of time that begins with the entrance and ends with the graduation of respondents' most recent graduating class, provided that the class graduated at least three (: ) months prior to the date on which respondents must begin to d.isseminate the necessary statistics with respect to the base period. The three (3) month period immediately following the close of the base period shall be used by respondents to monitor and record the employment success of all enrollees whose enrollment terminated during the base period. Respondents may not include in the computation of statistics for the base period persons whose enroUment terminated during the three ( ) month recordation period. Such persons wiu be included in the statistics for the base period that covers their graduating class. On the first business day falling more than three (3) months after the graduation of the most recent graduating class respondents shall begin to disseminate statistics for that base period. Respondents shall continue to distribute said statistics nnti the first business day falling three (in months after the graduation of the next graduating class. The following example describes how base periods wil be utilized by respondents: Base period 1 wil cover the period that begins with the entrance and ends with the graduation of the first class whose graduation date occurs after the effective date of this order. Therefore if a class began on Jan. 1, 1975 and graduated on Mar. 1, 1975 then from Mar. 1, 1975 until ,June 1, 1975 respondents would monitor and record the employment experience of all enrollees whose enrollment terminated during the base period, Jan. 1 1975 to Mar. 1 1975. Respondents would begin disseminating these statistics on the first business day after June 1, 1975.

Base period number two (2) would begin with entrance and end with the graduation of the next graduating class. If that class began on l"eb. 1 , 1975 and graduated on Apr. 1 1975 then from Apr. 1 , 1975 to July 1, 1975 respondents would monitor and record the employment experience bf all enrollees whose enrollment b nninated during base period number two (2) Feb. 1 , 1975 to Apr. I, 1975. Respondents would begin disseminating these statistics on the first business day after July 1 , 1975. FINAL ORDER The administrative law judge fied his initial decision in this matter on July 28, 1975, finding respondents to have engaged in the acts and practices as alleged in the complaint and entering a cease and desist order against respondents. That initial decision was entered after the default of respondents in filing an answer to the complaint and to the administrative law judge s subsequent order providing for reconsideration of default if answer is filed by July 9, 1975. A copy of the initial decision and order was served on the respondents American Tractor Trailer Training, Inc. and Charles R. Schwab on Aug. 14, 1975 and respondent American Tractor Trailer Training School, Inc. on Aug. 18 1975. No appeal was taken from the initial decision. The Commission having now determined that the matter should not be placed on its own docket for review, and that the initial decision should become effective as provided in Section 3.51(a) of the Commission s Rules of Practice j (iS1 Complaint It is ordered That the initial decision and order contained therein shall become effective on Sept. 17, 1975; and It is further ordered That the respondents shah, within sixty (60) days after service upon them of this order, file with the Commission a written report, signed by the respondents, setting forth in detail the manner and form in which they have complied with this order.