New England Tractor Trailer Training School of Massachusetts, Inc., et al.; Analysis To Aid Public Comment

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