What FTC 16 CFR Part 254 - Guides for Private Vocational and Distance Education Schools requires
16 CFR Part 254 contains the Federal Trade Commission's Guides for Private Vocational and Distance Education Schools, enforced under section 5 of the FTC Act (15 USC 45) against unfair or deceptive practices in the marketing, sale and operation of for-profit vocational and distance education programs. Section 254.0 sets scope and application to all industry members offering vocational or distance education for a fee. Section 254.1 defines industry members and recruitment terminology. Section 254.2 prohibits deceptive trade or business names that imply public or non-profit status when none exists. Section 254.3 prohibits misrepresentation of the extent or nature of accreditation, approval, recognition, endorsement or licensing - including misrepresenting state-board licensing as full programmatic accreditation. Section 254.4 prohibits misrepresentation of facilities, services, qualifications of staff, status, and employment prospects for students after training - this is the core prohibition and includes prohibitions on misrepresenting instructor credentials, the availability or type of employment after graduation, financial aid availability, and the conduct of distance education versus in-person instruction. Section 254.5 prohibits misrepresentation of enrollment qualifications or limitations including false claims of selective admission. Section 254.6 prohibits deceptive use of diplomas, degrees or certificates that imply state authorisation or accreditation not held. Section 254.7 prohibits deceptive sales practices including bait-and-switch employment offers, failure to disclose total program cost and refund policy prior to enrollment, and failure to disclose all requirements for successful completion. Violations are pursued under FTC Act section 5 and may result in injunctions, consumer redress, civil penalties up to USD 51,744 per violation (16 CFR 1.98 adjusted), and bans from the education industry under section 19 of the FTC Act.
Pillar: Sales, Marketing & PR · Authority: United States Federal Trade Commission (ecfr.gov); Bureau of Consumer Protection - Division of Advertising Practices · Version: 1.0.0 · Last updated:
Primary source: https://www.ecfr.gov/current/title-16/chapter-I/subchapter-B/part-254
SHA-256 integrity: d1b43d0211c825ae4b31ad130fcfa0ba67aadc01a83c910e305bf03385f68570
Primary Citations — 8 traced to source
- 16 CFR Part 254 FTC Guides for Private Vocational and Distance Education Schools https://www.ecfr.gov/current/title-16/chapter-I/subchapter-B/part-254
- 16 CFR 254.2 deceptive trade or business names https://www.ecfr.gov/current/title-16/chapter-I/subchapter-B/part-254/section-254.2
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