[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: 16CFR254.4]

[Page 172-173]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 254_GUIDES FOR PRIVATE VOCATIONAL AND DISTANCE EDUCATION 
SCHOOLS--Table of Contents
 
Sec. 254.4  Misrepresentation of facilities, services, qualifications 
of staff, status, and employment prospects for students after training.

    (a) It is deceptive for an industry member to misrepresent, directly 
or indirectly, in advertising, promotional materials, or in any other 
manner, the size, location, services, facilities, or equipment of its 
school or the number or educational qualifications of its faculty and 
other personnel. For example, an industry member should not:
    (1) Misrepresent the qualifications, credentials, experience, or 
educational background of its instructors, sales representatives, or 
other employees.
    (2) Misrepresent, through statements or pictures, the nature or 
efficacy of its courses, training devices, methods, or equipment.
    (3) Misrepresent the availability of employment while the student is 
undergoing instruction or the role of the school in providing or 
arranging for such employment.
    (4) Misrepresent the availability or nature of any financial 
assistance available to students. If the cost of training is financed in 
whole or in part by loans, students should be informed that loans must 
be repaid whether or not they are successful in completing the program 
and obtaining employment.
    (5) Misrepresent the nature of any relationship between the school 
or its personnel and any government agency or that students of the 
school will receive preferred consideration for employment with any 
government agency.
    (6) Misrepresent that certain individuals or classes of individuals 
are members of its faculty or advisory board; have prepared 
instructional materials; or are otherwise affiliated with the school.
    (7) Misrepresent the nature and extent of any personal instruction, 
guidance, assistance, or other service, including placement assistance, 
it will provide students either during or after completion of a course.
    (b) It is deceptive for an industry member to misrepresent that it 
is a nonprofit organization or to misrepresent affiliation or connection 
with any public institution or private religious or charitable 
organization.
    (c) It is deceptive for an industry member to misrepresent that a 
course has been recently revised or instructional equipment is up-to-
date, or misrepresent its ability to keep a program current and up-to-
date.
    (d) It is deceptive for an industry member, in promoting any course 
of training in its advertising, promotional materials, or in any other 
manner, to misrepresent, directly or by implication, whether through the 
use of text, images, endorsements, or by other means, the availability 
of employment after graduation from a course of training, the success 
that the member's graduates have realized in obtaining such employment, 
or the salary that the member's graduates will receive in such 
employment.

    Note to paragraph (d):
    The Commission's Guides Concerning Use of Endorsements and 
Testimonials in Advertising (part 255 of this

[[Page 173]]

chapter) provide further guidance in this area.

[63 FR 42573, Aug. 10, 1998 as amended at, 63 FR 72350, Dec. 31, 1998]