Evening star., 1927-05-01
MAIL SCHOOL CODE
BEING FORMULATED
|. IN CLEANUP DRIVE
Correspondence Institutions
Launch Campaign After
Federal Warning.
AGREE TO END UNFAIR
PRACTICES AND FRAUD
Trade Commission Will Recognize
Valid Set of Rules, Nugent
Tells Conference.
specIaI DIspateh % The star.


PITTSBURGH, Pa, April 30
Faced with the solemn warning that
unfair practices in advertising and
publication and use of fraudulent and
misleading claims by the industry
must be eliminated under threat OF
Federal prosecution, American cor
respondence schools today launched
a cleanup" campaign among their
membership, with the assurance that
the Federal Government will recog-
nize a valid and workable code OF
ethics to be rigidly followed by each
member of the industry.
Out of a meeting here today, called
by the Federal Trade Commission, and
attended by representatives of most
of the large correspondence schools
throughout the Nation, came a code
of ethics drawn up by representatives
Of the industry as the guiding pro-
gram for business conduct and ad-
vertising for the industry which
claims an annual income OF S70,O00,-
900 from tuition fees.
Will Prosecute VioIators.
COQG was duOpLSu ldIo lU0dV
after Federal Trade Commissioner
John +. Nugent told the conference
it must eliminate the unfair practices
within the industry of which COM
plant has been made to the commits
sion. He asked the $50 correspond.
ence school representatives attending
the meeting to set up the code, speci-
flying what they considered unfair
practice, and said that any school
violating this code in the future would
be prosecuted. Mr.. Nugent said the
complaints now on file with the Fed.
eral Trade Commission against GER
tain correspondence schools have been
placed upon the suspense list and
promised that the commission will in
dorse any workable code arrived at
by the conference.
He made 1t plain that there are two
distinct classes OF correspondence
schools-bona fide institutions. among
them those conducted as auxiliary
courses of prominent colleges and
universities of the Nation, and an.
other class, advertising extensive
courses in a few lessons with the
guarantee of a high.salaried position
on the completion of study. The lat
ter class. he said, constitutes the
group which have been attacked in
complaints now on file with the COM
mission.
Code of Ethics Drawn.
Armed with the promise made by
Commissioner Nugent, a committee
representing the major schools of the
country drew up the following code
of ethics:
Resolved, that overstatements or
Misrepresentation relating to actual
or probable earnings are unfair
practices.
THAT overstatements which set
forth the demands and opportunities
IN any vocation or field of activity
constitute unfair practices.
THAT to represent employment
service in a misleading manner consti-
tutes an unfair practice"
The following are declared unfair
practices:
ITO promise or guarantee Job
or a raise in pay.
"The making of an offer limited as
to time or otherwise when in fact
such offer is not SO limited.
THE representation of an offer
as special, when in fact it is reg
ular.
THE use of a marked-up or ficti.
cious price is misleading.
tions in the price of a course or serv.
ice 10 prospects. resulting in the con-
current quoting of different prices
for the same course or service.
Subterfuges Prohibited.
ITO resort to the subterfuge of Of
fering a scholarship or a partial
scholarship which is merely used as
a selling device.
1.-The offering Of a series OF reduc-
service as free when in fact such
commodity or service is regularly in
cluded as part of a specific course or
service.
THE disparaging reference TO a
competitor or to competitors
courses or service.
THE use Of any name which indi-
Gates or implies that the institution
is a plant, factory, shop, association
other than an institution of learning,
unless the name of such institution
is always used in connection with eX-
planatory words or phrases. which
clearly indicate its nature of an edu-
cational institution.
ITO confer degrees or to issue oi-
plomas except when earned under con-
ditions that assure adequate teaching
facilities and under auspices which
conform to recognized standards as TO
quality and thoroughness of instrUc.
tion and condition of course.
ITO misrepresent the character and
scope of any course Of instruction or
any course of service offered.
Accuracy of Faculties.
ITO list inaccurately or state the
Of members OF faculty,
advisory boards, instructors, writer's
or others.
"To claim students are given per.
sonal instruction by the head Of the
or department when such
Is not the fact.
THE use of Help Wanted columns
IN newspapers or other publications
for the purpose Of getting in touch
with prospective students.
THE use of blind advertisements
10 attract prospects when the copy
loes not clearly set forth that such
Instructions are offered.
''The use of superlatives In adver-
isements Of selling, except when
Justified by the facts.
THE enrolment or retention of stu
1ents in any course or segvice for
which they are obviously untitled by
'eason of educational, economic dis.
qualifications.
The use of the word guarantee
n the description of money.back
agreements between the institution
md its students.
Money-back agreements or con-
racts not clearly stating the confi.
Continued ON. Rage. O.. Column.