[Federal Register Volume 64, Number 205 (Monday, October 25, 1999)]
[Notices]
[Pages 57465-57466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27784]
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FEDERAL TRADE COMMISSION
[File No. 982-3040]
New England Tractor Trailer Training School of Massachusetts,
Inc., et al.; Analysis To Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement.
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SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair or deceptive acts or
practices or unfair methods of competition. The attached Analysis to
Aid Public Comment describes both the allegations in the draft
complaint that accompanies the consent agreement and the terms of the
consent order--embodied in the consent agreement--that would settle
these allegations.
DATES: Comments must be received on or before December 27, 1999.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 600 Pennsylvania Ave., NW., Washington, D.C. 20580.
FOR FURTHER INFORMATION CONTACT: Carol Jennings or Elaine Kolish, FTC/
S-4631, 600 Pennsylvania Ave., NW, Washington, D.C. 20580, (202) 326-
3010 or 326-3042.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby
given that the above-captioned consent agreement containing a consent
order to cease and desist, having been filed with and accepted, subject
to final approval, by the Commission, has been placed on the public
record for a period of sixty (60) days. The following Analysis to Aid
Public Comment describes the terms of the consent agreement, and the
allegations in the complaint. An electronic copy of the full text of
the consent agreement package can be obtained from the FTC Home Page
(for October 1, 1999), on the World Wide Web, at ``http://www.ftc.gov/
os/actions97.htm.'' A paper copy can be obtained from the FTC Public
Reference Room, Room H-130, 600 Pennsylvania Avenue, NW, Washington,
D.C. 20580, either in person or by calling (202) 326-3627.
Public comment is invited. Comments should be directed to: FTC/
Office of the Secretary, Room 159, 600 Pennsylvania Ave., NW,
Washington, D.C. 20580. Two paper copies of each comment should be
filed, and should be accompanied, if possible, by a 3\1/2\ inch
diskette containing an electronic copy of the comment. Such comments or
views will be considered by the Commission and will be available for
inspection and copying at its principal office in accordance with
Section 4.9(b)(6)(ii) of the Commission's Rules of Practice (16 CFR
4.9(b)(6)(ii)).
[[Page 57466]]
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission has accepted, subject to final
approval, an agreement to a proposed consent order from respondents New
England Tractor Trailer Training School of Massachusetts, Inc., New
England Tractor Trailer Training School of Connecticut, Inc., and Mark
Greenberg, individually and as president of the corporate respondents.
The proposed consent order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement and take other appropriate action or make
final the agreement's proposed order.
This matter concerns practices related to the advertising,
promotion, and sale of vocational training programs, including driver
training for tractor trailer and heavy straight trucks. The
Commission's complaint charges that respondents violated the Federal
Trade Commission Act, 15 U.S.C. Sec. 41 et seq., by making numerous
representations that were false and for which they lacked a reasonable
basis of substantiation. These representations concerned: employment
and/or placement rates for graduates of respondents' program; the
availability of local truck driving jobs; the rate of passing the CDL
test by graduates of respondents' program; the number of graduates of
the program who pass the CDL test the first time they take it; the
adequacy of training to prepare students for the Commercial Drivers
License (CDL) test; the extent to which future employers will reimburse
the cost of tuition; and the admissions criteria for respondents'
program.
Part I of the proposed consent order prohibits future
misrepresentations concerning the above, as well as other results or
benefits of respondents' training programs or career services.
Part II of the proposed order requires a disclosure of respondents'
placement rates. This disclosure is triggered by any representations
about the rate of employment or placement of graduates of respondents'
program. In addition, this disclosure is required to be given to
prospective students, in writing, prior to the time that students are
presented with the enrollment agreement and other enrollment forms.
Appendices A and B to the proposed order set forth the prescribed
manner of calculation of placement rates and the form in which the
information will be given to prospective students.
Part III of the proposed order requires disclosure of the licensing
test pass rates for graduates of respondents' program. This disclosure
is triggered by any representations about the rate of passing any test,
including but not limited to the CDL test, by graduates of respondents'
program. In addition, this disclosure is required to be given to
prospective students, in writing, prior to the time that students are
presented with the enrollment agreement and other enrollment forms.
Appendices C and D to the proposed order set forth the prescribed
manner of calculation of test pass rates and the form in which the
information will be given to prospective students.
Part IV of the proposed order is a record keeping provision that
requires the respondents to maintain certain records for five (5) years
after the last date of dissemination of any representation covered by
the consent order. These records include: (1) All advertisements and
promotional materials, sales or admissions interview scripts or
training manuals, catalogs, and other marketing materials; (2) all
materials relied upon in making any representation covered by the
order; and (3) all evidence in respondents' possession or control that
contradicts, qualifies, or calls into question the representation or
the basis relied upon for it.
Part V of the proposed order requires distribution of the order,
for five (5) years from the date of issuance, to officers and directors
of the corporations; managers who have responsibilities with respect to
the subject matter of the order; and personnel involved in sales,
admissions, recruitment, or responding to consumer complaints and
inquiries.
Part VI of the proposed order requires that the Commission notified
of any changes in the corporations that might affect compliance
obligations under the order.
Part VII of the proposed order requires that, for a period of five
(5) years, the individual respondent notify the Commission of any new
business affiliation or employment that involves the advertising,
promotion, or sale of vocational training programs.
Part VIII of the proposed order requires that for a period of five
(5) years, respondents undertake a monitoring program to ensure that
all employees or independent contractors engaged in admissions,
recruiting, sales, or other customer service, comply with Parts I, II,
and III of the order.
Part IX of the proposed order requires the respondents to file
compliance reports with the Commission.
Part X of the proposed order states that the Commission, without
prior notice, may use investigators to pose as prospective consumers of
respondents.
Finally, Part XI of the proposed order states that, absent certain
circumstance, the order will terminate twenty (20) years from the date
it is issued.
The purpose of this analysis is to facilitate public comment on the
proposed consent order. It is not intended to constitute an official
interpretation of the agreement and proposed order or to modify their
terms in any way.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-27784 Filed 10-22-99; 8:45 am]
BILLING CODE 6750-01-M