MEMORANDUM OF AGREEMENT 

BETWEEN 

THE FEDERAL TRADE COMMISSION 

AND 

THE DEPARTMENT OF VETERANS AFFAIRS 

This Memorandum of Agreement (MOA) is executed by the Deputy Undersecretary for 

Economic Opportunity, Veterans Benefits Administration, Department of Veterans Affairs (VA), 

and the Director, Bureau of Consumer Protection, Federal Trade Commission (FTC), to provide 

mntual assistance in the oversight and enforcement oflaws pertaining to the advertising, sales, 

and enrollment practices of institutions of higher learning and other establishments that offer 

training for military education benefits recipients. 

Purpose and Authority 

Pursuant to 38 U.S.C. § 3694, the Secretary of Veterans Affairs may use the facilities and 

services of any other Federal department or agency when administering VA's educational 

benefits programs, provided that the Secretary enter into a proper agreement with that 

department or agency. 

The Secretary, in accordance with 38 U.S.C. § 3696, must enter into an agreement with the FTC 

to help ensure that VA does not approve enrollment of an eligible veteran or eligible person in a 

course offered by an institution which uses any type of unfair or deceptive adve1iising, 

marketing, offering for sale, sale, or enrollment practices in violation of Section 5 of the FTC 

Act, 15 U.S.C. § 45(a). The FTC shall utilize, where appropriate, its services and facilities, 

consistent with its discretion and resources, in carrying out investigations pursuant to this MOA. 

Responsibilities and Procedures 

1. Referrals for Investigation. VA, by its Deputy Undersecretary for Economic Opportunity, 

may request that the FTC conduct an investigation of an institution approved for the enrollment 

of eligible veterans. All referrals shall be directed to the Director, Bureau of Consumer 

Protection, FTC. 

The FTC also operates the Consumer Sentinel Network (CSN), a web-based complaints database 

that provides law enforcement members with access to millions of consumer complaints. The 

FTC, VA, and Departments of Defense (DoD) and Education (ED) upload the consumer 

complaints they receive about educational institutions into the CSN. Although VA has access to 

the CSN, this MOA does not address the submission of complaints to the CSN, nor does such a 

submission constitute a referral under the terms of this MOA. 
2. Content of Referral. In the referral, the Deputy Undersecretary shall provide a written 

explanation of the basis for his or her belief that the institution subject to the referral is utilizing, 

or has utilized, advertising, sales, or enrollment practices of any type that are unfair or deceptive. 

The Deputy Undersecretary shall submit to the FTC documentary or other infonnation in support 

of his or her view, which may include information on the size of the institution, the number of 

veterans emolled, and any other data or information relevant to detennining the impact of the 

school's practices on veterans and other consumers. 

3. FTC Consideration of Referrals. The Director of the Bureau of Consumer Protection shall 

evaluate the information provided by VA and shall, in his or her discretion, detem1ine whether 

acceptance of the referral is consistent with the Commission's existing investigative, 

enforcement, and resource priorities. In dete1mining whether to accept a referral, the Director 

may consider a number of factors, including but not limited to: the type of violations alleged; 

whether the violations allegedly occurred on a regular and ongoing basis; the nature and amount 

of consumer injury at issue and the number of consumers affected; and the likelihood of 

preventing future unlawful conduct and securing redress or other relief. The Director shall notify 

VA of his or her decision with regard to the referral. 

4. Impact of Referral Determinations. In no event shall the acceptance or rejection of a 

referral be construed as a decision by the Commission about the merits of the matters referred 

and in no event shall the rejection of a referral be the sole basis upon which VA shall dete1mine 

that an institution has not violated 38 U.S.C. § 3696(a). Nothing in this MOA precludes VA 

from rendering a decision under Section 3696(a). 

5. JtfC Staff Investigation and Analysis. Should the Director of the Bureau of Consumer 

Protection accept a referral, he or she will direct FTC staff to conduct such investigation as it 

deems necessary and to prepare an analysis of whether a referred institution may have utilized 

unfair or deceptive advertising, marketing, sales, and emollment practices that may be prohibited 

by Section 5 of the FTC Act, 15 U.S.C. § 45. 

6. Investigative Assistance by VA Staff. During the FTC's consideration of the referral and 

any subsequent investigation, VA staff in its Education Service with knowledge of the referred 

institution shall be available to respond to requests for information from FTC staff as needed. 

Upon written request from the FTC, VA shall provide FTC staff with access to advertising, sales, 

and emollment materials that VA obtained from a referred institution pursuant to 38 U.S.C. § 

3696(b). 

7. Requests for FTC Staff Analysis. Upon written request from VA, FTC staff shall provide 

the analysis described in Paragraph 5 to VA at the conclusion of the investigation. 

a. Requests.for a Law Enforcement Pmpose. In accordance with 16 C.F.R. § 4.1 l(c), 

VA may obtain the staff analysis by filing a request with the General Counsel of the 

FTC containing a certification that such information will be maintained in confidence 

and will be used only for official law enforcement purposes. The ce1tificate must also 

describe the nature of the law enforcement activity and the anticipated relevance of 

the information to that activity. 
b. Requests for Purposes other than Law Enforcement. In accordance with 16 C.F.R. § 

4.1 l(d), VA may request a copy of the staff analysis from the General Counsel of the 

FTC for purposes other than law enforcement. However, pursuant to sections 6(f) 

and 2l(f) of the FTC Act, the General Counsel may be required to redact certain 

nonpublic information from the staff analysis. 

8. Impact of Staff Analysis. The FTC staff analysis described under Paragraph 5 is intended for 

the use of VA in rendering its judgment under 38 U.S.C. §3696(a). The analysis is not a 

determination by the Commission as to whether the institution has been or is violating Section 5 

of the FTC Act, an order finalized thereunder, or any other laws enforced by the FTC. 

9. VA Response to Staff Analysis. Within 90 days ofVA's receipt of the FTC staff analysis, 

VA shall take appropriate action with respect to the subject matter of the analysis. When 

practicable and appropriate, before VA issues press releases, annom1cements, guidance, or other 

public documents pertaining to educational institutions investigated by the FTC pursuant to this 

MOA, VA will notify the FTC in advance of the planned release or as soon as practicable 

thereafter. VA shall notify the FTC of the final action taken with regard to the alleged 

violation(s) of section 3696(a) by an institution. 

10. FTC Actions. Upon issuing press releases, announcements (including the issuance or filing 

of a law enforcement complaint under laws the FTC enforces), guidance, or other public 

documents pertaining to educational institutions investigated by the FTC pursuant to this MOA, 

the FTC will notify VA. The FTC shall provide VA with all final orders entered by the 

Commission or federal courts against institutions covered by this MOA. 

11. Third-Party Information Requests. In the event a third party makes a request (including, 

but not limited to, any demand, subpoena, court order, or request made pursuant to the Freedom 

oflnfom1ation Act or the Privacy Act) for access to or copies of nonpublic information received 

by one party to this MOA from the other party to this MOA, the party receiving the request shall: 

a. As soon as practicable, notify the providing party in writing of the request and 

include a copy of the request; 

b. If the request is made pursuant to the Freedom oflnformation Act or the Privacy Act, 

refer, if practicable, such request for material to the providing party for a direct 

response to the requestor. If making such a refe1rnl is not practicable, the receiving 

party shall consult with the providing party in connection with its response to the 

requestor. 

c. If the request is not made pursuant to the Freedom ofinformation Act or the Privacy 

Act, before complying with the third party request, consult with the providing party 

and, to the extent practicable, give the providing party a reasonable opportunity to 

respond to the demand or request and to assert all reasonable and appropriate legal 

exemptions or privileges on its own behalf; and 
d. Consent to an application by the party providing the infonnation to intervene in any 

action to preserve, protect, and maintain the confidentiality of such information or 

any related privilege. 

General Provisions 

This MOA does not modify in any way the ability and responsibility of the pmties to enforce 

their respective statutes and regulations. Specifically, nothing in this MOA shall require the 

FTC, or limit the FTC's authority, to investigate whether educational institutions or others have 

violated the Federal Trade Commission Act, 15 U.S.C. § 45, by committing unfair or deceptive 

sales, advertising, or enrollment practices, or any other laws enforced by the FTC. The FTC may 

use materials obtained pursuant to this MOA when carrying out investigations under the FTC 

Act and other laws. 

Except as otherwise required by applicable law, the pmties shall take all actions reasonably 

necessary to preserve, protect, and maintain all privileges and claims of confidentiality related to 

all nonpublic information provided pursuant to this MOA. Nothing in this MOA waives or alters 

any privilege, claim of confidentiality, or other protection applicable to information provided 

pursuant to this MOA. 

Nothing in this MOA shall be deemed to waive or alter any existing statutory or regulatory 

requirements governing the disclosure of nonpublic information. Each pmty will maintain 

nonpublic information in a manner that confonns to the standards that apply to federal agencies 

for the protection of the confidentiality of nonpublic information and personally identifiable 

information and for data security and integrity, including the Privacy Act, 5 U.S.C. § 552a; the 

Freedom oflnformation Act, 5 U.S.C. § 552; Sections 6(f) and 21(±) of the FTC Act, 15 U.S.C. 

§§ 6(f), 57b-2; Commission Rules 4.9-4.11, 16 C.F.R. §§ 4.9-4.11; and 38 C.F.R. §§ 1.460-

1.603. 

Liaison 

For purposes of this agreement, the Associate Director of the Division of Financial Practices, 

Bureau of Consumer Protection, shall be the FTC's liaison, and the Complim1ce m1d Liaison 

Temn Leader, Veterans Benefits Administration, shall be VA's liaison. 

Where this MOA requires VA to provide notice to the FTC, such notice shall be provided to the 

Associate Director of the Division of Financial Practices, Bureau of Consumer Protection. 

Where this MOA requires that the FTC provide notice to VA, such notice shall be provided to 

m1d the Compliance and Liaison Temn Leader, Veterans Benefits Administration. 

Notwithstanding the above liaison provisions, all referrals for investigation must be made by the 

Deputy Undersecretary for Economic Opportnnity, and all decisions regarding referrals must be 

made by the Director of the Bureau of Consumer Protection. 
Revisions, Additions, and Modifications 

The parties intend to periodically review the functioning and effectiveness of this MOA with a 

view to altering the scope or operation ohhis MOA as they deem necessary. Such review shall 

take place at least once every three years. Revisions, alterations, or modifications to this MOA 

must be agreed to in writing by both parties and will be pursued expeditiously. 

Duration of Agreement 

This MOA shall be effective as of the last date of the signatures below and will terminate at such 

time as is agreed upon by both parties. 

By: Federal Trade Commission 

c-+--; l~i~/'\.__=-- .

;t essica L. Rich 

( ~irector 

Bureau of Consumer Protection 

Federal Trade Commission 

Curtis L. Coy 

Deputy Undersecretary for Economic Op ortunity 

Veterans Benefits Administration 

Department of Veterans Affairs 

Date: