16 CFR 254.4 - Misrepresentation of facilities, services, qualifications of staff, status, and employment prospects for students after training.

§ 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 chapter) provide further guidance in this area.
[63 FR 42573, Aug. 10, 1998, as amended at 63 FR 72350, Dec. 31, 1998]

Title 16 published on 2014-01-01

no entries appear in the Federal Register after this date.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
U.S. Code: Title 15 - COMMERCE AND TRADE

§ 41 - Federal Trade Commission established; membership; vacancies; seal

§ 42 - Employees; expenses

§ 43 - Office and place of meeting

§ 44 - Definitions

§ 45 - Unfair methods of competition unlawful; prevention by Commission

§ 45a - Labels on products

§ 46 - Additional powers of Commission

§ 46a - Concurrent resolution essential to authorize investigations

§ 47 - Reference of suits under antitrust statutes to Commission

§ 48 - Information and assistance from departments

§ 49 - Documentary evidence; depositions; witnesses

§ 50 - Offenses and penalties

§ 51 - Effect on other statutory provisions

§ 52 - Dissemination of false advertisements

§ 53 - False advertisements; injunctions and restraining orders

§ 54 - False advertisements; penalties

§ 55 - Additional definitions

§ 56 - Commencement, defense, intervention and supervision of litigation and appeal by Commission or Attorney General

§ 57 - Separability clause

§ 57a - Unfair or deceptive acts or practices rulemaking proceedings

15 U.S. Code § 32, 33 - Repealed.

§ 57b - Civil actions for violations of rules and cease and desist orders respecting unfair or deceptive acts or practices

15 U.S. Code § 32, 33 - Repealed.

15 U.S. Code § 32, 33 - Repealed.

15 U.S. Code § 57b–2a - Confidentiality and delayed notice of compulsory process for certain third parties

15 U.S. Code § 57b–2b - Protection for voluntary provision of information

15 U.S. Code § 32, 33 - Repealed.

15 U.S. Code § 32, 33 - Repealed.

15 U.S. Code § 32, 33 - Repealed.

§ 57c - Authorization of appropriations

15 U.S. Code § 32, 33 - Repealed.

15 U.S. Code § 32, 33 - Repealed.

§ 58 - Short title

Statutes at Large