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REMARKS ON CONSUMER PROTECTION ISSUES

NCJ Number
46732
Author(s)
R V BULLOCK
Date Published
1976
Length
5 pages
Annotation
LEGAL ISSUES RELATIVE TO THE OPERATION AND LICENSING OF PROPRIETARY SCHOOLS ARE DISCUSSED BY THE ASSISTANT ATTORNEY GENERAL OF THE STATE OF KENTUCKY.
Abstract
A NUMBER OF ISSUES FACE THE LICENSING AUTHORITIES FOR PROPRIETARY SCHOOLS. FOREMOST IS THE QUESTION OF WHETHER THE SCHOOLS THAT ARE SUBJECT TO STATE STATUTES HAVE ACTUALLY OBTAINED THE NECESSARY LICENSES. IF THEY HAVE NOT, IT MIGHT BE DIFFICULT TO ENFORCE RELEVANT STATE LAWS. A SUGGESTED REMEDY IS A STATUTORY AMENDMENT REQUIRING AN AFFIRMATIVE STATEMENT OF A LICENSEE'S NUMBER IN ALL ADVERTISEMENTS FOR PROPRIETARY SCHOOLS. FRAUDULENT SCHOOLS AND LEGITIMATE OR QUASI-LEGITIMATE SCHOOLS FALL UNDER LICENSING AUTHORITY. FRAUDULENT SCHOOLS ARE THOSE WHICH PROMISE SERVICE AND DELIVER NOTHING, AND THOSE WHO RUN THEM SHOULD BE PROSECUTED. LEGITIMATE OR QUASI-LEGITIMATE PROPRIETARY OR EDUCATIONAL INSTITUTIONS ABIDE BY THE LAW, BUT OCCASIONALLY OR FREQUENTLY ENGAGE IN UNFAIR, FALSE, MISLEADING, OR DECEPTIVE PRACTICES. THERE ARE A NUMBER OF DECEPTIVE PRACTICES WHICH ARE ENDEMIC TO PROPRIETARY SCHOOLS. PRIME EXAMPLES ARE THE EXAGGERATED CLAIM OF HIGH SALARIES ATTAINED BY GRADUATES AND THE FALSE IMPRESSION THAT GRADUATES OF THESE SCHOOLS WILL FIND SPEEDY EMPLOYMENT IN INDUSTRY AS A RESULT OF THE TRAINING. BOTH OF THESE CASES ARE PROBABLY ACTIONABLE BY THE LICENSING AUTHORITY. OTHER LESS CLEARLY MISLEADING PRACTICES INCLUDE VERBAL COMMITMENTS THAT A SIGNED CONTRACT IS CANCELLABLE (WHEN IN FACT IT IS NOT), AND THE RAISING OF UNREALISTIC EXPECTATIONS WHICH THE POTENTIAL STUDENT COULD NEVER FULFILL. MOST STATE ATTORNEYS ARE INVOLVED IN THE PROBLEMS ASSOCIATED WITH PROPRIETARY SCHOOLS, USUALLY THROUGH THE STRUCTURE OF A CONSUMER PROTECTION DIVISION UNDER THE DIRECTION OF THE ATTORNEY GENERAL. IN OTHER STATES, JURISDICTION IS HELD BY ANOTHER STATE AUTHORITY TO WHICH THE ATTORNEY GENERAL MUST YIELD. A GOOD FAITH EFFORT MUST BE MADE BY BOTH AGENCIES IN ORDER TO INVESTIGATE AND RESOLVE VIOLATIONS OF THE LAW. IT IS STATED THAT REGULATORS MUST REPRESENT THE CONSUMER AND NOT THE PROPRIETARY SCHOOLS, AND REGULATORS MUST NOT BECOME THE CAPTIVES OF THE INDUSTRY REGULATED. THE AUTHOR BELIEVES THAT 'SELF-REGULATION' IS INEFFECTIVE, AND THAT IF A SCHOOL COMMITS A DECEPTIVE OR FRAUDULENT ACT, THERE MUST BE PROMPT ACTION TO STOP IMPROPER CONDUCT. IT IS IMPORTANT TO EXPLORE THE POSSIBILITY OF A CLOSE WORKING RELATIONSHIP BETWEEN THE INSTITUTE FOR EDUCATIONAL LEADERSHIP AND THE ASSISTANT ATTORNEYS GENERAL INVOLVED IN CONSUMER PROTECTION WITH THE NATIONAL ASSOCIATION OF ATTORNEYS GENERAL. (DJM)