[Federal Register Volume 74, Number 145 (Thursday, July 30, 2009)]
[Proposed Rules]
[Pages 37973-37975]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-18194]


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FEDERAL TRADE COMMISSION

16 CFR Part 254


Private Vocational and Distance Education Schools

AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').

ACTION: Request for public comments.

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SUMMARY: As part of the Commission's systematic review of all current 
FTC rules and guides, the Commission requests public comment on the 
overall costs, benefits, necessity, and regulatory and economic impact 
of the FTC's guides for ``Private Vocational and Distance Education 
Schools'' (``Vocational School Guides'' or ``Guides'').

DATES: Written comments must be received by October 16, 2009.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``Vocational 
School Guides Review, Matter No. P097701'' to facilitate the 
organization of comments. Please note that your comment - including 
your name and your state - will be placed on the public record of this 
proceeding, including on the publicly accessible FTC Website, at 
(http://www.ftc.gov/os/publiccomments.shtm).
    Because comments will be made public, they should not include any 
sensitive personal information, such as an individual's Social Security 
Number; date of birth; driver's license number or other state 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. Comments also 
should not include any sensitive health information, such as medical 
records or other individually identifiable health information. In 
addition, comments should not include any ``[t]rade secret or any 
commercial or financial information which is obtained from any person 
and which is privileged or confidential . . .'' as provided in Section 
6(f) of the Federal Trade Commission Act (``FTC Act''), 15 U.S.C. 
46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing 
material for which confidential treatment is requested must be filed in 
paper form, must be clearly labeled ``Confidential,'' and must comply 
with FTC Rule 4.9(c), 16 CFR 4.9(c).\1\
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    \1\The comment must be accompanied by an explicit request for 
confidential treatment, including the factual and legal basis for 
the request, and must identify the specific portions of the comment 
to be withheld from the public record. The request will be granted 
or denied by the Commission's General Counsel, consistent with 
applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR 
4.9(c).
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    Because paper mail addressed to the FTC is subject to delay due to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted by using the following weblink: (https://secure.commentworks.com/ftc-VocationalSchoolGuides), and following the 
instructions on the web-based form. To ensure that the Commission 
considers an electronic comment, you must file it on the web-based form 
at the weblink (https://secure.commentworks.com/ftc-VocationalSchoolGuides). If this Notice appears at (http://www.regulations.gov/search/index.jsp), you may also file an electronic 
comment through that website. The Commission will consider all comments 
that regulations.gov forwards to it. You may also visit the FTC Website 
at (http://www.ftc.gov) to read the Notice and the news release 
describing it.
    A comment filed in paper form should include the ``Vocational 
School Guides Review, Matter No. P097701'' reference both in the text 
and on the envelope, and should be mailed or delivered to the following 
address: Federal Trade Commission, Office of the Secretary, Room H-135 
(Annex V), 600 Pennsylvania Avenue, NW, Washington, DC 20580. The FTC 
is requesting that any comment filed in paper form be sent by courier 
or overnight service, if possible, because U.S. postal mail in the 
Washington area and at the Commission is subject to delay due to 
heightened security precautions.
    The FTC Act and other laws the Commission administers permit the 
collection of public comments to consider and use in this proceeding as 
appropriate. The Commission will consider all timely and responsive 
public comments that it receives, whether filed in paper or electronic 
form. Comments received will be available to the public on the FTC 
Website, to the extent practicable, at (http://www.ftc.gov/os/publiccomments.shtm). As a matter of discretion, the Commission makes 
every effort to remove home contact information for individuals from 
the public comments it receives before placing those comments on the 
FTC Website. More information, including routine uses permitted by the 
Privacy Act, may be found in the FTC's privacy policy, at (http://www.ftc.gov/ftc/privacy.shtm).

FOR FURTHER INFORMATION CONTACT: Julie A. Lady, (216) 263-3409, Staff 
Attorney, East Central Region, Federal Trade Commission, 1111 Superior 
Avenue, Suite 200, Cleveland, Ohio 44114.

SUPPLEMENTARY INFORMATION:

I. Background

    The Vocational School Guides are intended to advise proprietary 
businesses offering vocational training courses, either on the school's 
premises or through distance education, how to avoid unfair or 
deceptive practices in connection with the advertising, promotion, 
marketing, or sale of their courses or programs. The Commission 
promulgated the Guides (then titled the ``Guides for Private Vocational 
and Home Study Schools'') in May 1972. The guides became effective on 
August 14, 1972. (37 FR 9665 (May 16, 1972)). The Commission amended 
the Guides effective October 9, 1998. These amendments added a 
provision addressing misrepresentations related to post-graduation 
employment. In order to streamline the Guides, certain provisions not 
specific to vocational schools and a section suggesting affirmative 
disclosures were deleted.\2\ (62 FR 19703 (Aug. 10, 1998) as amended at 
63 FR 72350 (Dec. 31, 1998)).
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    \2\The deleted affirmative disclosures included the school's 
make-up work policy, costs of purchasing the textbooks and equipment 
needed for the courses, a description of the school's physical 
facilities and a description of the school's placement service.
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    The Vocational School Guides address misrepresentations in the 
description of a school including misrepresentations that the school is 
affiliated with the government or is an employment agency. The Guides 
also address misleading representations related to the accreditation 
and approval

[[Page 37974]]

of the school, the transferability of credit received at the school to 
other institutions, and the use of testimonials and endorsements. 
Schools are cautioned against misrepresenting the qualifications of 
teachers, the nature of the courses, the availability of employment 
after graduation, the availability of financial assistance, and 
enrollment qualifications. Also addressed is the use of deceptive 
diplomas or certificates. Finally, the Guides warn against using 
deceptive sales practices such as using classified ads that appear to 
be ``help-wanted'' ads.
    These Guides, like other industry guides issued by the Commission, 
are ``administrative interpretations of laws administered by the 
Commission for the guidance of the public in conducting its affairs in 
conformity with legal requirements.'' 16 CFR 1.5. Conduct inconsistent 
with the Guides may result in corrective action by the Commission under 
applicable statutory provisions.

II. Regulatory Review Program

    The Commission reviews all current Commission rules and guides 
periodically. These reviews seek information about the costs and 
benefits of the Commission's rules and guides as well as their 
regulatory and economic impact. The information obtained assists the 
Commission in identifying rules and guides that warrant modification or 
rescission. Therefore, the Commission solicits comments on, among other 
things, the economic impact of, and the continuing need for the 
Vocational School Guides; the benefits of the Guides to purchasers of 
vocational education; and the burdens the Guides place on businesses.

III. Request for Comment

    The Commission solicits comments on the following specific 
questions related to the Vocational School Guides:
    (1) Is there a continuing need for the Guides as currently 
promulgated? Why or why not?
    (2) What benefits have the Guides provided to consumers? What 
evidence supports the asserted benefits?
    (3) What modifications, if any, should the Commission make to the 
Guides to increase their benefits to consumers?
    (a) What evidence supports your proposed modifications?
    (b) How would these modifications affect the costs and benefits of 
the Guides for consumers?
    (c) How would these modifications affect the costs and benefits of 
the Guides for businesses, particularly small businesses?
    (4) Should the Guides define ``clearly and conspicuously,'' given 
the guidance that industry members should make certain disclosures 
clearly and conspicuously? If so, why, and how? If not, why not?
    (5) What impact have the Guides had on the flow of truthful 
information to consumers and on the flow of deceptive information to 
consumers? What evidence supports the asserted impact?
    (6) What significant costs have the Guides imposed on consumers? 
What evidence supports the asserted costs?
    (7) What modifications, if any, should be made to the Guides to 
reduce the costs imposed on consumers?
    (a) What evidence supports your proposed modifications?
    (b) How would these modifications affect the costs and benefits of 
the Guides for consumers?
    (c) How would these modifications affect the costs and benefits of 
the Guides for businesses, particularly small businesses?
    (8) Please provide any evidence that has become available since 
1998 concerning consumer perception of or experience with private 
vocational and distance education schools. Does this new information 
indicate that the Guides should be modified? If so, why, and how? If 
not, why not?
    (9) What benefits, if any, have the Guides provided to businesses, 
and in particular to small businesses? What evidence supports the 
asserted benefits?
    (10) What modifications, if any, should be made to the Guides to 
increase their benefits to businesses, and particularly to small 
businesses?
    (a) What evidence supports your proposed modifications?
    (b) How would these modifications affect the costs and benefits of 
the Guides for consumers?
    (c) How would these modifications affect the costs and benefits of 
the Guides for businesses, particularly small businesses?
    (11) What significant costs, including costs of compliance, have 
the Guides imposed on businesses, particularly small businesses? What 
evidence supports the asserted costs?
    (12) What modifications, if any, should be made to the Guides to 
reduce the costs imposed on businesses, and particularly on small 
businesses?
    (a) What evidence supports your proposed modifications?
    (b) How would these modifications affect the costs and benefits of 
the Guides for consumers?
    (c) How would these modifications affect the costs and benefits of 
the Guides for businesses, particularly small businesses?
    (13) What evidence is available concerning the degree of industry 
compliance with the Guides? Does this evidence indicate that the Guides 
should be modified? If so, why, and how? If not, why not?
    (14) Is any of the guidance provided in the Guides no longer 
needed? If so, explain. Please provide supporting evidence.
    (15) What potentially unfair or deceptive practices involving the 
advertising and promotional claims used by vocational and distance 
education schools in the advertising, promotion, marketing, and sale of 
courses or programs of instruction offered by private vocational or 
distance education schools, if any, are not covered or are not 
adequately covered by the Guides?
    (a) What evidence demonstrates the existence of such practices? 
Please provide specific examples and indicate how and where such 
potentially unfair or deceptive practices occur.
    (b) With reference to such practices, should the Guides be 
modified? If so, why, and how? If not, why not?
    (16) What modifications, if any, should be made to the Guides to 
account for changes in relevant technology or economic conditions?
    (a) What evidence supports the proposed modifications?
    (b) How would these modifications affect the costs and benefits of 
the Guides for consumers and businesses, particularly small businesses?
    (17) Do the Guides overlap or conflict with other federal, state, 
or local laws or regulations? If so, how?
    (a) What evidence supports the asserted conflicts?
    (b) With reference to the asserted conflicts, should the Guides be 
modified? If so, why, and how? If not, why not?
    (c) Is there evidence concerning whether the Guides have assisted 
in promoting national consistency with respect to the advertising and 
promotional claims used by vocational and distance education schools to 
recruit students? If so, please provide that evidence.
    (18) Are there foreign or international laws, regulations, or 
standards with respect to the advertising and promotional claims used 
by vocational and distance education schools to recruit students that 
the Commission should consider as it reviews the Guides? If so, what 
are they?
    (a) Should the Guides be modified in order to harmonize with these 
foreign or international laws, regulations, or standards? If so, why, 
and how? If not, why not?

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    (b) How would such harmonization affect the costs and benefits of 
the Guides for consumers and businesses, particularly small businesses?

List of Subjects in 16 CFR Part 254

    Advertising, Trade practices.

    Authority: 38 Stat. 717, as amended; 15 U.S.C. 41-58.
    By direction of the Commission.

Donald S. Clark,
Secretary
[FR Doc. E9-18194 Filed 7-29-09: 9:56 am]
BILLING CODE: 6750-01-S