Current through 2024 Legislative Session Act Chapter 510
Section 193 - Consumer fair practices and complaints(a) This section applies to all postsecondary institutions and private business and trade schools as defined in Chapter 85 of this title.(b) All postsecondary institutions and private business and trade schools and their representatives are subject to the Consumer Fraud Act of subchapter II of Chapter 25 of Title 6. Recruitment, admissions, contractual agreements, student financial assistance, obligations to repay student loans, placement assistance, job placement rates, advertising, refund policies, accreditation, and transferability of credits are within the definition of "merchandise" in § 2511 of Title 6.(c) A statement offering a program of study printed in the institutional catalog at the time of a student's enrollment in the program is deemed to constitute a representation that the student has a reasonable expectation of completion of the program within the timeframe specified by the Department in regulation.(d) No person, directly or through an agent, may use the terms "approval," "approved," "authorized," "approved to operate," "approval to operate," "authorized to operate," "approved to confer degrees," "approval to confer degrees," "authorized to confer degrees," "certificate," "certificate of approval," "certified," or similar language without having been issued a certificate of approval by the Department and, if applicable, approval to confer degrees from the Department as provided in § 125 of Title 8.(e) No person, directly or through an agent, may make a statement that a postsecondary institution or its courses of instruction have been accredited unless the accrediting agency is identified.(f) No person, directly or through an agent, may make a statement that a postsecondary institution or its courses of instruction have been approved by a state or the federal government unless the approval can be substantiated by a certificate or letter of approval issued by the approving agency of the state or federal government.(g) A violation of subsection (c), (d), (e), or (f) of this section is an unlawful practice under § 2513 of Title 6 and a violation of subchapter II of Chapter 25 of Title 6.(h) If a student enters into a financial agreement with an institution at a time the institution was not compliant with the requirements of § 186 or Chapter 85 of this title, the financial agreement is void. Any moneys paid to the institution under the agreement must be refunded to the student.(i) Any written complaints alleging a violation of this subchapter that the Department receives will be reviewed by the Department. The Department will provide information on potential violations of this subsection or the Consumer Fraud Act to the Department of Justice.(j) The Department's authority to act under this subsection is independent of a determination by the Department of Justice or a court that a person violated this subsection or the Consumer Fraud Act.Added by Laws 2021, ch. 401,s 2, eff. 8/4/2022.