[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR254.3]

[Page 171-172]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 254_GUIDES FOR PRIVATE VOCATIONAL AND DISTANCE EDUCATION 
SCHOOLS--Table of Contents
 
Sec. 254.3  Misrepresentation of extent or nature of accreditation or 
approval.

    (a) It is deceptive for an industry member to misrepresent, directly 
or indirectly, the extent or nature of any approval by a State agency or 
accreditation by an accrediting agency or association. For example, an 
industry member should not:
    (1) Represent, without qualification, that its school is accredited 
unless all programs of instruction have been accredited by an 
accrediting agency recognized by the U.S. Department of Education. If an 
accredited school offers courses or programs of instruction that are not 
accredited, all advertisements or promotional materials pertaining to 
those courses or programs, and making reference to the accreditation of 
the school, should clearly and conspicuously disclose that those 
particular courses or programs are not accredited.
    (2) Represent that its school or a course is approved, unless the 
nature, extent, and purpose of that approval are disclosed.
    (3) Misrepresent that students successfully completing a course or 
program of instruction can transfer the credit to an accredited 
institution of higher education.

[[Page 172]]

    (b) It is deceptive for an industry member to misrepresent that a 
course of instruction has been approved by a particular industry, or 
that successful completion of the course qualifies the student for 
admission to a labor union or similar organization or for receiving a 
State or Federal license to perform certain functions.
    (c) It is deceptive for an industry member to misrepresent that its 
courses are recommended by vocational counselors, high schools, 
colleges, educational organizations, employment agencies, or members of 
a particular industry, or that it has been the subject of unsolicited 
testimonials or endorsements from former students. It is deceptive for 
an industry member to use testimonials or endorsements that do not 
accurately reflect current practices of the school or current conditions 
or employment opportunities in the industry or occupation for which 
students are being trained.

    Note to paragraph (c):
    The Commission's Guides Concerning Use of Endorsements and 
Testimonials in Advertising (part 255 of this chapter) provide further 
guidance in this area.

[63 FR 42573, Aug. 10, 1998]