Guides For Private Vocational And Home Study Schools
16 CFR Part 254 · Guides · in the Code of Federal Regulations 1973-1995 (23 annual editions)
Scanned CFR pages, OCR text may contain errors; the linked Library of Congress PDF is the authority. Not legal advice; not affiliated with the FTC. These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.
Latest edition: Library of Congress, 1995 CFR · Earliest edition: 1973 CFR
Text (1995 edition, OCR)
Federal Trade Commission that fact. A crushed feather product should not contain residue in excess of 5 percent of the weight of the crushed feathers contained therein. [Guide 7) §253.8 Damaged feathers. An industry product which contains damaged feathers in an amount in ex- cess of 2 percent of the total weight of the filling material should be labeled with a clear and conspicuous disclosure that it contains damaged feathers. [Guide 8] §253.9 Secondhand filling material. (a) An industry product which con- tains any filling material which has previously been used should not be of- fered for sale unless a clear and con- spicuous disclosure of that fact is made on the label thereof and in all advertis- ing and invoices relating to such prod- uct. (b) In making the disclosure referred to in paragraph (a) of this section the term ‘“‘secondhand”’ may be used. How- ever, such terms as “reworked,” ‘“‘re- processed,”’ or terms of similar import should not be used unless they are ac- companied by a clear and conspicuous statement that such material is not new or has previously been used. [Guide 9] § 253.10 Cleanliness of filling material. (a) An industry product which con- tains filling materials which have not been cleaned so as to meet the stand- ard set forth in paragraph (b) of this section should not be offered for sale or sold. (b) A test such as that reflected in Federal Standard 148a, dated December 10, 1964, entitled ‘‘Classification, Iden- tification, and Testing of Feather Fill- ing Material,’? should be used to deter- mine whether feathers and down have been properly cleaned. Feather and down material having an oxygen num- ber exceeding 20 grams of oxygen per 100,000 grams of sample should be pre- sumed not to have been properly cleaned. [Guide 10] §253.11 Disclosure as to size. (a) Sleeping bags. The sizes of sleeping pags should be disclosed by labeling and such sizes should be expressed in terms of the finished length and width 157-061 O—95——4 87 § 253.11 measurements of the bag in inches qualified by the words ‘‘Finished Size’’. If any representation of the ‘“‘Cut Size”’ or the dimension of the materials used in the construction of sleeping bags, are made in labeling, advertising, marking, or otherwise, the provisions of the Commission’s Trade Regulation Rule on the ‘“‘Advertising and Labeling as to Size of Sleeping Bags’’ should be followed (see Part 400 of this chapter). (b) Comforters, etc. The sizes of com- forters and other similar industry products should be disclosed by label- ing and such sizes should be expressed in terms of the finished length and width measurements in inches exclu- sive of any fringe ornamentation. (c) Pillows, cushions, etc. The sizes of pillows, cushions, and other similar in- dustry products, when disclosed by la- beling, should be expressed in terms of finished measurements in inches quali- fied by the words ‘‘Finished Size.’’ This statement may be followed in paren- theses by a notation of product meas- urement in inches prior to finishing, such parenthetical expression to in- clude the phrase ‘‘Cut Size.”’ Thus, an example of proper size marking when a pillow has a finished size of 21” x 27” and a cut size of 22” x 28”, and disclo- sure is made of the cut size, would be: Finished Size 21” x 27” (Cut Size 22” x 28”). [Guide 11] PART 254—GUIDES FOR PRIVATE VOCATIONAL AND HOME STUDY SCHOOLS Sec. 254.1 Definitions. 254.2 Deceptive trade or business names. 254.8 Misrepresentation of extent or nature of accreditation or approval. 254.4 Misrepresentation of facilities, serv- ices, qualifications of instructors, and status. 254.5 Misrepresentation of enrollment quali- fications or limitations. 254.6 Deceptive use of diplomas, degrees, or certificates. 254.7 Deceptive sales practices. 254.8 Deceptive pricing and misuse of the word “‘free.’”’ 254.9 Deceptive or unfair collection and credit practices. 254.10 Affirmative disclosure prior to enroll- ment. § 254.1 AUTHORITY: 38 Stat. 717, as amended; 15 U.S.C. 41-58. SOURCE: 37 FR 9665, May 16, 1972, unless otherwise noted. §264.1 Definitions. (a) Industry member. Any person, firm, corporation, or organization engaged in the operation of a privately owned school which offers resident or cor- respondence courses or training or in- struction purporting to prepare or qualify individuals for employment in any occupation or trade or in work re- quiring mechanical, technical, artistic, business, or clerical skills or which is for the purpose of enabling a person to improve his appearance, social apti- tude, personality, or other attributes is considered to be an industry member. However, the term ‘‘industry member” shall not include resident primary or secondary schools or institutions of higher education which offer at least a 2-year program of accredited college level studies for resident students which is generally acceptable for credit toward a bachelor’s degree. (b) Accredited. For the purpose of this part the term ‘‘accredited’’ means that a course or school to which the term is applied has been evaluated and found to meet established criteria by an ac- crediting agency or association recog- nized by the U.S. Commissioner of Edu- cation of the U.S. Department of Health, Education, and Welfare, as reli- able authority as to the quality of the training offered. (c) Approved. For the purpose of this part, the term ‘‘approved’’ means that a school or course has been recognized by a State or Federal agency as meet- ing educational standards or other re- lated qualifications as prescribed by that agency for the school or course to which the term is applied. It is not and should not be used interchangeably with ‘‘accredited,” and the term ‘“ap- proved’’ is not justified by the mere grant of a corporate charter to operate or license to do business as a school and should not be used unless the rep- resented “approval” has in fact been affirmatively required or authorized by State or Federal law. [Guide 1} 88 16 CFR Ch. | (1-1-95 Edition) §254.2 Deceptive trade or business names, (a) An industry member should not use any trade or business name, label, insignia, or designation which has the capacity and tendency or effect of mis- leading or deceiving prospective stu- dents, or student with respect to the nature of the school, its accreditation, programs of instruction or methods of teaching, or any other material fact. (b) An industry member should not falsely represent directly or indirectly by the use of a trade or business name or in any other manner that: (1) It is a part of or connected with a branch, bureau, or agency of the U.S. Government, or of any State, or civil service commission; (2) It is an employment agency or that it is an employment agent or au- thorized training facility for another industry or member of such industry, or otherwise deceptively conceal the fact that it is a school. (c) If an industry member conducts its instruction wholly by correspond- ence or home study, a clear and con- spicuous disclosure should be made in immediate conjunction with its trade or business name that it is a cor- respondence or home study school. An industry member which offers both resident and correspondence or home study instruction should clearly and conspicuously identify in all advertise- ments and promotional materials, ex- cept in those pertaining solely to its resident program, the programs or courses to be offered in whole or in part by correspondence or home study. [Guide 2) $254.3 Misrepresentation of extent or nature of accreditation or approval. (a) An industry member should not misrepresent directly or indirectly the extent or nature of any approval its school may have received from a State agency or the extent or nature of its accreditation by a nationally recog- nized accrediting agency, or associa- tion. Dlustratively, an industry mem- ber should not: (1) Unqualifiedly represent that its school is accredited unless all of its programs of instruction have in fact been accredited by an accrediting agen- cy recognized by the U.S. Commis- Federal Trade Commission sioner of Education of the U.S. Depart- ment of Health, Education, and Wel- fare. If an accredited school offers courses or programs of instruction which have not been accredited, all ad- vertisements or promotional materials pertaining to such courses or programs should contain a clear and conspicuous disclosure that they are not accredited if any reference is made in the adver- tisements or promotional materials to the accreditation of the school. (2) Represent that its school or a course is approved, unless the nature, extent, and purpose of that approval are disclosed. (3) Represent that students success- fully completing a course or program of instruction may transfer credit therefor to an accredited institution of higher education unless such is the fact. (b) An industry member should not represent that a course of instruction has been approved by a particular in- dustry, or that successful completion thereof qualifies the student for admis- sion to a labor union or similar organi- zation, or for the receipt of a State or Federal license to perform certain functions, unless such is the fact. (c) An industry member should not represent that its courses are rec- ommended by vocational counselors, high schools, colleges, educational or- ganizations, employment agencies, or members or officials of a particular in- dustry, or that it has been the subject of unsolicited testimonials or endorse- ments from former students or anyone else unless such is the fact. Testimo- nials or endorsements which do not ac- curately reflect current practices of the school, or current conditions or employment opportunities in the in- dustry or occupation to which the training pertains, should not be used. [Guide 3] $254.4 Misrepresentation of facilities, services, qualifications of instruc- tors, and status. (a) An industry member should not misrepresent directly or indirectly in its advertising, promotional materials, or in any manner the size, location, fa- cilities, or equipment of its school or the number or educational qualifica- tions of its faculty and other person- § 254.4 nel. Nlustratively, an industry member should not: (1) Use or refer to fictional organiza- tion divisions or position titles or make any representation which has the tendency or capacity to mislead or de- ceive students or prospective students, as to the size or importance of the school, its divisions, faculty, personnel, or officials, or in any other material respect. (2) Misrepresent directly or indi- rectly the size, importance, location, facilities, or equipment of the school through use of photographs, illustra- tions, or any other depictions in cata- logs, advertisements, or other pro- motional materials. For example, pho- -tographs or illustrations which purport to show school equipment should not be used if the school does not use such equipment in the conduct of its courses. (3) Represent that the school owns, operates, or supervises a dormitory, eating, or other living accommodations unless such is the fact. (4) Falsely or deceptively represent the location or locations at which its courses will be conducted. (5) Misrepresent the nature, or effi- cacy, of its courses, training devices, methods or equipment or the number, qualifications, training, or experience of its faculty or personnel, whether by means of endorsements or otherwise. (6) Falsely represent that it will pro- vide or arrange for part or full-time employment while the student is un- dergoing instruction; or misrepresent in any manner, directly or by implica- tion, the wvailability of such employ- ment or any other form of financial as- sistance. (7) Deceptively represent the nature of any relationship which the school or any of its officers, employees, or in- structors may have with the U.S. Gov- ernment or any of its agencies or any agency of a State or local government, or that by virtue of such a relationship or any prior relationship its students will receive preferred consideration in obtaining employment with such a gov- ernment or any of its agencies. (8) Represent directly or indirectly that certain individuals or classes of individuals are bona fide working members of its faculty, or are members 89 § 254.5 of its advisory board, or have played an active part in the preparation of its in- struction materials, unless such is the, fact, or misrepresent in any manner, directly or by implication, the extent or nature of the association of any per- son with the school or the courses of- fered. (9) Misrepresent the nature and ex- tent of any personal instruction, guid- ance, assistance, or other attention it will provide for its students either dur- ing a course or after completion of a course. (b) An industry member should not represent directly or indirectly that it is a nonprofit organization unless such is the fact. (c) An industry member should not falsely represent that it is affiliated with or otherwise connected with a public or private religious or chari- table organization. (ad) An industry member should not falsely or deceptively represent that a course has been recently revised, or that it has a revision system or serv- ice, or misrepresent in any manner, its facilities, procedures, or ability to keep a course current. [Guide 4] §254.5 Misrepresentation of enroll- ment qualifications or limitations. (a) An industry member should not misrepresent the nature or extent of any prerequisites it has established for enrollment in a course or program of instruction. For example, it should not: (1) Represent that a course is avail- able only to those having a high school diploma or other specific educational qualifications, unless the sale of such a course is limited to persons possessing generally acceptable evidence of such a diploma or educational qualifications. (2) Represent that only those who make an acceptable grade or complete successfully a certain test or examina- tion will be admitted, if in fact enroll- ments are not thus limited. (3) Falsely represent that it will ac- cept for enrollment only a limited number of persons or a limited number of persons from a certain geographical area. (4) Falsely represent that applica- tions for enrollment will be considered for only a limited period of time, or 90 16 CFR Ch. | (1-1-95 Edition) that they must be submitted by a cer- tain date. (b) An industry member should not falsely represent that the lack of a high school education or prior training or experience is not a handicap or im- pediment to successful completion of a course. (c) An industry member should en- deavor to establish the qualifications which an applicant should have to as- similate successfully the subject. mat- ter of the course. Applicants should be informed of these prerequisites, and those who are not so qualified should not be enrolled. [Guide 5] § 254.6 Deceptive use of diplomas, de- grees, or certificates. (a) An industry member should not issue a degree, diploma, certificate of completion, or any document of simi- lar import, which misrepresents di- rectly or indirectly the subject matter, substance or content of the course of study or any other material fact con- cerning the course for which it was awarded or the accomplishments of the student to whom its was awarded. (b) An industry member should not offer or confer an academic, profes- sional, or occupational degree, if the award of such degree has not been au- thorized by the appropriate State edu- cational agency or approved by a na- tionally recognized accrediting agency, unless it clearly and conspicuously dis- closes in al) advertising and pro- motional materials which contain a reference to such degree that its award has not been authorized or approved by such an agency. (c) An industry member should not offer or confer a high school diploma unless the program of instruction to which it pertains is substantially equivalent to that offered by a resident secondary school, and unless the stu- dent is informed by means of a clear and conspicuous disclosure in writing prior to his enrollment, that the indus- try member cannot guarantee or other- wise control the recognition which will be accorded the diploma by institu- tions of higher education, other schools or by prospective employers, and that the degree to which it is recognized is a matter solely within the discretion of those agencies. [Guide 6] Federal Trade Commission $254.7 Deceptive sales practices. (a) In obtaining leads to prospective students, an industry member should not use advertisements or promotional material which is classified, designated or captioned, ‘“‘Men wanted to train for ***”, “Felp Wanted”, “Employment”, “Business Opportunities” or by words or terms of similar import, so as to represent directly or by implication that employment is being offered. (b) An industry member should not deceptively designate or refer to its sales representatives as “registrars’’, “counselors’’, “advisors”, or by words of similar import or misrepresent in any other manner, the titles, qualifica- tions, training, experience or status of its salesmen, agents, employees, or other representatives. (c) The advertising or promotional materials of an industry member which are used to provide leads to prospective students should include the full name and address of the school (a local ad- dress is permissible in the case of a multilocational school) and disclose the fact that it is a school if such is not apparent from its name. In addi- tion, a person who responds to such an advertisement or promotional material should not be visited by a salesman un- less the advertisement or material con- tains a clear and conspicuous disclo- sure that a salesman may call or unless consent to such a visit is first obtained by mail or telephone. (d) In obtaining leads to prospective students, an industry member should not represent that it is conducting a talent hunt, contest, or similar test, unless such is the fact and such rep- resentation is accompanied by a clear and conspicuous disclosure of the in- dustry member’s name and address and the fact that it is a school if such is not apparent from its name. An indus- try member which conducts a talent hunt, contest, or similar test among prospective students should keep accu- rate records concerning the results thereof. [Guide 7] §254.8 Deceptive pricing and misuse of the word “free.” (a) An industry member should not represent directly or indirectly in ad- vertising or otherwise that a course or courses may be taken for a specified 91 § 254.8 price, or at a saving, or at a reduced price, when such is not the fact: or oth- erwise deceive students or prospective students with respect to the cost of a course or any equipment, books, or supplies associated therewith or fur- nish any means or instrumentality by which others engaged in obtaining en- rollments may make such representa- tions. Illustratively, an industry mem- ber should not represent: (1) That veterans or other stated classes of persons may be enrolled at a reduced or special rate unless such is the fact; (2) That a specific amount is its usual and customary price for a course unless such amount is the price at which the course has been usually and customar- ily sold in the recent regular course of business; (3) That any saving is afforded in the price of a course from the member’s regular price unless the price at which the course is offered constitutes a re- duction from the price at which the course has been usually and customar- ily sold in the recent regular course of business; (4) That books, training materials, or training aids are furnished at reduced rates, (i) Unless the prices therefor have been reduced from the prices at which they were usually and customarily sold by the member in the recent and regu- lar course of business; or (ii) Unless the prices therefor have been reduced from the prices at which they were usually and customarily sold at retail by principal outlets in the trade area. (b) An industry member should not misrepresent the total cost of the course to a prospective student or falsely represent that it offers scholar- ships which pay for all or part of the course. NoTrE: The Commission’s Guides Against Deceptive Pricing (Part 233 of this chapter) afford further guidance in this area. (c) An industry member which rep- resents that any course material, training device, or service is free should comply with the provisions of the Commission’s Guide Concerning Use of the Word “Free” and Similar Representations (Part 251 of this chap- ter). [Guide 8] § 254.9 §254.9 Deceptive or unfair collection and credit practices. (a) An industry member should not use any deceptive representations or deceptive means to collect or attempt to collect tuition or other charges from its students. For example, an industry member should not represent that a de- linguent account has been or will be re- ferred to an independent collection agency or to an attorney unless such is the fact. (b) An industry member should not seek to enforce or obtain a judgment or otherwise attempt to collect on any contract or other instrument between itself and a student, or transfer or as- sign such contract or other instrument to a third party for the purpose of col- lection or of enforcing or obtaining a judgment on said contract or instru- ment, if the member or its employees or representatives misrepresented the nature or the terms of said contract or | instrument at the time or prior to the time the contract or instrument was signed. Nore: The Commission’s Guides Against Debt Collection Deception (Part 237 of this chapter) afford further guidance in this area. [Guide 9] $254.10 Affirmative disclosure prior to enrollment. : ; Before obtaining the signature of a prospective student or of his parent or guardian on an enrollment contract or contract of sale, an industry member should furnish in writing to that per- son or persons the following informa- tion: (a) The member’s policy and regula- tions relative to make-up work, delay or delinquency in meeting course re- quirements, and standards required of the student for achieving satisfactory progress, including class attendance if applicable. (b) If the member recommends, sug- gests, or requires that the student have or secure any additional texts, equip- ment, or materials other than usual student supplies such as paper and pen- cils, or utilize any supplementary serv- ices offered by the member, and the cost thereof is not included in the con- tract price of the course, an itemized 16 CFR Ch. I (1-1-95 Edition) list of such items and services showing the price thereof. (c) In the case of courses to be taught in residence, a description of the school’s physical facilities, and equip- ment to be used in teaching the class, and the usual class size. (d) If the member represents that it offers a placement service to its grad- uates or will otherwise secure or assist them to find employment, a detailed and explicit description of the extent and nature of this service or assist- ance. (e) Any other material facts concern- ing the school and the program of in- struction or course which are reason- ably likely to affect the decision of the student to enroll therein. [Guide 10] PART 255—GUIDES CONCERNING USE OF ENDORSEMENTS AND TESTIMONIALS IN ADVERTISING Sec. 255.0 255.1 255.2 255.3 Definitions. General considerations. Consumer endorsements. Expert endorsements. 255.4 Endorsements by organizations. 255.5 Disclosure of material connections. AUTHORITY: 38 Stat. 717, as amended; 15 U.S.C. 41-58. §255.0 Definitions. (a) The Commission intends to treat endorsements and testimonials identi- cally in the context of its enforcement of the Federal Trade Commission Act and for purposes of this part. The term endorsements is therefore generally used hereinafter to cover both terms and situations. (b) For purposes of this part, an en- dorsement means any advertising mes- sage (including verbal statements, demonstrations, or depictions of the name, signature, likeness or other identifying personal characteristics of an individual or the name or seal of an organization) which message consum- ers are likely to believe reflects the opinions, beliefs, findings, or experi- ence of a party other than the sponsor- ing advertiser. The party whose opin- ions, beliefs, findings, or experience the message appears to reflect will be called the endorser and may be an indi- vidual, group or institution. 92,