MEMORANDUM OF AGREEMENT 

BETWEEN 

THE FEDERAL TRADE COMMISSION 

AND 

THE DEPARTMENT OF VETERANS AFFAIRS 

lbis Memorandum ofAgreement (MOA) is executed by the Director ofEducation Service, 

Veterans Benefits Administration, Department ofVeterans Affairs (VA), and the Director, 

Bureau ofConsumer Protection, Federal Trade Commission (FTC or Commission), to provide 

mutual assistance in the oversight and enforcement of laws pertaining to the advertising, sales, 

and enrollment practices ofinstitutions ofhigher learning and other establishments that offer 

training for military education benefits recipients. 

Pumose and Authority 

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

services ofany other Federal department or agency when administering V A'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(c), must enter into an agreement with the 

FTC. Upon referral from the VA consistent with this MOA, and subject to the FTC's discretion, 

the FTC shall utilize, where appropriate, its services and facilities, consistent with its available 

resources, in carrying out investigations into deceptive or unfair advertising, sales, or enrollment 

practices in violation of Section 5 ofthe FTC Act, 15 U.S.C. § 45(a). · 

Responsibilities and Procedures 

1. Referrals for Investigation. VA, by its Director ofEducation Service, may request that the 

FTC conduct an investigation ofan institution approved for the enrollment ofeligible veterans. 

All referrals shall be directed to the Associate Director ofthe Division ofFinancial Practices, 

Bureau ofConsumer Protection, FTC. 

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

that provides law enforcement members with access tq millions ofconsumer complaints. The 

FTC, VA, and Departments ofDefense (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 submissiort of complaints to the CSN, nor does such a 

submission constitute a referral under the terms ofthis MOA. 

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2. Content ofReferral. In the referral, the Director ofEducation Service shall provide a written 

explanation ofthe 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 deceptive. The 

Director ofEducation Service shall submit to the FTC documentary or other information in 

support ofhis or her view, which may include information on the size ofthe institution, the 

number ofveterans enrolled, and any other data or information relevant to determining the 

impact ofthe school's practices on veterans and other consumers. 

a. Confidentiality ofReferral. Both parties shall consider the content of any referral 

made pursuant to this MOA as nonpublic information and, except as otherwise 

required by applicable law, shall take all actions reasonably necessary to preserve, 

protect, and maintain all privileges and claims ofconfidentiality related to the content 

ofevery such referral. 

3. FTC Consideration ofReferrals. The Director ofthe Bureau ofConsumer Protection shall 

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

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

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

may consider a number offactors, including but not limited to: the type ofviolations alleged; 

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

ofconsumer injury at issue and the number ofconsumers affected; the likelihood ofpreventing 

future unlawful conduct and securing redress or other relief; and whether other state or federal 

law enforcement agencies have investigated the institution for similar or related violations. The 

Associate Director ofthe Division ofFinancial Practices, or the Associate Director's designee, 

shall notify VA ofthe Director ofthe Bureau ofConsumer Protection's decision with regard to 

the referral. 

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

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

and in no event shall the rejection ofa referral be the sole basis upon which VA shall determine 

that an institution has not violated 38 U.S.C. § 3696(a). Not4ing in this MOA precludes VA 

from rendering a decision under Section 3696(a). 

5. FTC Staff Investigation and Preliminary Findings. Should the Director ofthe 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 preliminary findings ofwhether a referred 

institution may have utilized deceptive advertising, marketing, sales, and enrollment practices 

that may be prohibited by Section 5 ofthe FTC Act, 15 U.S.C. § 45(a). For purposes ofthis 

MOA only, "preliminary findings" shall mean either a nonpublic analysis prepared by FTC staff 

or an administrative or federal district court complaint approved by the Commission and which 

contains the FTC's allegations regarding the referred institution's violations. 

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

any subsequent investigation, VA staff in its Education Service with knowledge ofthe 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, 

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

3696(b). 

7. Requests for Preliminary ·Findings. Upon written request from VA, FTC staffshall provide 

the preliminary findings described in Paragraph 5 to VA at the conclusion ofthe investigation. 

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

VA may obtain the preliminary findings by filing a request with the General Counsel 

ofthe FTC containing a certification that such information will be· maintained in 

confidence and will be used only for official law enforcement purposes. The 

certificate must also describe the nature ofthe law enforcement activity and the 

anticipated relevance ofthe information to that activity. 

b. Requests for Purposes other than Law Enforcement. In accordance with 16 C.F.R. § 

4.11( d), VA may request a copy ofthe preliminary findings from the General Counsel 

ofthe FTC for purposes other than law enforcement. However, pursuant to sections 

6(f) and 21(f) ofthe FTC Act, the General Counsel may be required to redact certain 

nonpublic information from the preliminary. findings. 

8. Impact ofPreliminary Findings. The FTC preliminary findings described under Paragraph 

5 are intended for the use ofVA in rendering itsjudgment under 38 U.S.C. §3696(a). The 

preliminary findings are not a determination by the Commission as to whetherthe institution has 

been or is violating Section 5 ofthe FTC Act, an order finalized thereunder, or any other laws 

enforced by the FTC. · 

9. VA Response to Preliminary Findings. Within 90 days ofVA's receipt ofthe FTC 

preliminary findings, VA shall take appropriate action with respect to the subject matter ofthe 

preliminary findings. When practicable and appropriate, before VA issues press releases, 

announcements, guidance, or other public documents pertaining to educational institutions 

investigated by the FTC pursuant to this MOA, VA will notify the FTC in advance ofthe 

planned release or as soon as practicable thereafter. VA shall notify the FTC ofthe final action 

taken with regard to the alleged violation(s) ofsection 3696(a) by an institution. 

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

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 investigated by the FTC pursuant to this MOA. 

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

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

ofInformation Act or the Privacy Act) for access to or copies ofnonpublic 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 ofthe request and 

include a copy ofthe request; 

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b. lfthe request is made pursuant to the Freedom ofInformation Act or the Privacy Act, 

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

response to the requestor. Ifmaking such a referral is not practicable, the receiving 

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

requestor and prior to disclosing the information to the requestor. 

c. Ifthe request is not made pursuant to the Freedom ofInformation Act orthe 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 providing party to intervene in any action to 

preserve, protect, and maintain the confidentiality ofsuch information or any related 

privilege. 

General Provisions 

This MOA does not modify in any way the ability and responsibility ofthe parties 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 parties shall take all actions reasonably 

necessary to preserve, protect, and maintain all privileges and claims ofconfidentiality 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 ofnonpublic information. Each party will maintain 

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

for the protection ofthe confidentiality ofnonpublic information and personally identifiable 

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

Freedom ofInformation Act, 5 U.S.C. § 552; Sections 6(f) and 21(f) ofthe FTC Act, 15 U.S.C. 

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

1.603. 

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Liaison 

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

Bureau of Conswner Protection, shall be the FTC's liaison, and the Assistant Director, Oversight 

and Accountability, 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 Conswner Protection. 

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

tli.e Assistant Director, Oversight and Accountability, Veterans Benefits Administration. 

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

Director of Education Service, and all decisions to accept 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 of this 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 when 

agreed upon by both parties. 

By: Federal Trade Commission 

/signed/ 

Andrew Smith 

Director 

Bureau of Conswner Protection 

Federal Trade Commission 

By: Department of Veterans Affairs 

/signed/ 

Robert M. Worley II 

Director 

Education Service 

Veterans Benefits Administration 

Date: 11/29/2018 --- --------

Date: 11/26/2018 

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