Bell & Howell Company

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF BELL & HOWELL COMPANY, ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRAE COMMISSION ACf Doket 9099. Complaint, May 1977- , May 1980 This consent order reuires, among other things, a Lincolnwoo, Il. seHer of home study courss and its subsidiar to ceas misreprenting admiion crteria potential earnings, employment opportunities, and the nee or demand for their graduate. The firms are further prohibite from misreprenting the effeciveness of their job placment servce; that experience is not nec advantageous in obtaining employment; that their cours ar endors by a governmental agency; and that students ar provided with instrctional asistance. The order also reuires repondents to make prebe disclosure regardng the job success of previous students; the manner in which contrts can be cancelled; and the method use to calculate tuition obligations should a student drp out of a cour. Additionally, Bell & Howell is reuir to depoit in an escrow acunt the sum of $1.2 millon to provide refunds for fonner eligible students.

Appearances For the Commission: B'rWn Hennigan, Carlto Loe and Davi Marx, Jr.

For the respondents: Samuel Weisbard, Brue &/wmncher and Wiliam A. CerilZo, McDerrtt, Wil Emery, Chicago, II. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that Bell & Howell Company, a corporation, and Bell & Howell Schools, Inc., a corpration hereinafter sometimes referred to as respondents, have violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest hereby issues its complaint stating its charges in that respect as follows:

PARGRAH 1, Respondent Bell & Howell Company, (hereinafter sometimes referred to as BHC), is a corpration organized, existing and doing business under and by virtue of the laws of the State, of Ilinois with its principal office and place of business located at 7100 McCormick Ave,. Lincolnwood, Ilinois.

Respondent Bell & Howell Schools, Inc., (hereinafter sometimes Complaint 95 F.

referred to as BHS), is a corpration organized, existing and doing business under and by virtue of the laws of the State of Ilinois, with its principal office and place of business located at 4141 West Belmont Ave., Chicago, Ilinois. Respondent BHS is a wholly-owned subsidiary of respondent BHC.

The aforementioned respondents have cooperated, and acted together in carrying out the acts and practices hereinafter set forth. Respondents BHC has known of, condoned and approved, expressly or tacitly, the acts and practices of respondent BHS hereinafter set forth. Respondent BHC is materially and financially interested in and responsible for respondent BHS. BHC has received monies from BHS flowing from the acts and practices set forth herein. PAR. 2. Respondents have been engaged for some time last past in the advertising, promotion, formulation, offering for sale, sale and distribution of resident training and home study courses to the public purported to prepare completing students thereof for employment advancement or increased earnings in the fields of accounting, television repair, electronics, and other related career fields. The home study courses consist of a series of home study lessons pursued by correspondence through the D.S. mails. The resident training programs consist of a series of lessons similar in content and purpose to the home study courses. The violations alleged in this complaint relate to the acts and practices of respondents in connection with their home study program.

Further, for the purpose of enabling students to finance respondents' home study courses, respondents have arranged or assisted in the arrangement of credit and deferred payment term and in the application for benefits under the Veterans Educational Assistance Act, 38 D. C. 1651, et seq. ("VEAA"), and federally insured student loans under the Higher Education Resources and Student Assistance Act, 20 D. C. 1071, et seq. ("FISLP"). Respondents have accepted the revenues and proceeds flowing therefrom.

Further, respondents have engaged in recruitment of employees by means of advertisements in printed media of general circulation, and through other means, whereby members of the general public are induced to accept employment under written agreements and compensation schedules as members of respondents' sales force. PAR. 3. In the course and conduct of their aforesaid business respondents have disseminated, and caused to be disseminate, by means in or affecting commerce as "commerce" is defined in the Federal Trade Commission Act, certain advertisements concerning the home study courses including, but not limited to, advertisements insertd in newspapers and magazines of general interstate circulation .. .

J -- --.

761 Complaint and by means of brochures, pamphlets and other promotional materials disseminated through the United States mails, and by other means, for the purpose of obtaining leads or prospects for the sale of such home study courses, for the purpose of inducing the purchase of such home study courses, and for the purpose of recruiting and inducing the acceptance of employment by sales force members. Respondents' sales force members have visited prospective purchasers throughout the various states to induce the purchase of respondents' home study courses. Respondents have transmitted and received, and caused to be transmitted and received, in the course of advertising, offering for sale, sale and distribution of such home study courses, and in the course of advertising, recruiting, and inducing employment of sales force members, lessons and equipment from the home study courses advertising and promotional materials, sales contracts, invoices, biling statements, checks, monies, and other business papers and documents to and from prospective students, students, prospective sales force members, and sales force members, located in various States of the United States, other than the state of origination. Respondents, at an times mentioned herein, have maintained a substantial course of trade in said home study courses and recruitment of sales force members in or affecting commerce as "commerce" is defined in the Federal Trade Commission Act. PART I PAR. 4. In the course and conduct of their aforesaid business, for the purpose of obtaining leads or prospects for the sale of their home study courses and inducing the purchase of such home study courses respondents have made numerous statements and representations in magazines, newspapers, and other media, regarding opportunities for employment or advancement, occupational demand, earnings potentials, the placement assistance furnished to students completing respondents' home study courses, the instruction and assistance available to students, and other matters.

In the further course and conduct of their aforesaid business respondents have caused persons who respond to their advertisements to be visited by respondents' sales force members in the homes of such persons. For the purpose of inducing the sale of respondents' home study courses, such sales force members have made to prospective purchasers many statements or representations, directly or by implication, as enumerated above in this paragraph. In addition, such sales force members have made representations, directly or by implication regarding entry level wages and salary potentials, content and degree Complaint 95 F.

of difficulty of home study courses, contract terms and fin"ncing arrangements, VEAA benefits and FISLP loans, and other matters. Some of the aforesaid statements and representations have appeared in brochures and other printed materials furnished by respondents to sales force members, and other statements and representations have been made orally by such sales force members to prospective purchasers.

PAR. 5. By and through the use of the aforesaid statements and representations respondents have represented, directly or by implication that:

1. There is an urgent need or demand for students who complete respondents' home study courses in the positions and career fields for which respondents train such students.

2. Students completing respondents' home study coures receive high wages or salaries from employment in the positions or career fields for which respondents train such students. 3. A substantial proportion of students completing respondents' home study courses obtain employment through respondents' placement service.

4. Respondents are selective in enrollment. 5. A high school education or its equivalent is sufficient for admission and successful completion of respondents' home study courses.

6. Help sessions are available to respondents' home study students at regular and frequent intervals and provide personalized instruction and assistance.

7. Instruction and assistance from instructors are readily available to home study students through telephone services provided by respondents.

8. Respondents' home study electronics courses are simple and involve primarily manual skils.

PAR. 6. In truth and in fact:

1. In many instances there is not an urgent need or demand for students completing respondents' home study courses in the positions or career fields for which respondents train such students. 2. In many instances students completing respondents' home study courses do not receive high wages or salaries from employment in positions for which respondents train such students. 3. A substantial proportion of students completing respondents' home study courses do not obtain employment through the placement service offered by respondents.

761 Complaint 4. Respondents are not selective in enrollment; to the contrary. respondents require few qualifications of prospective students and accept all or most persons for enrollment in such courses who are wiling to execute a contract to pay for such home study courses. 5. In many instances a high school education or its equivalent is not sufficient for successful completion of respondents' home study courses.

6. In many instances help sessions are not available to respondents' home study students at regular and frequent intervals and do not provide personalized instruction and assistance. 7. In many instances instruction and assistance from instructors are not readily available to home study students through telephone services provided by respondents.

8. Respondents' home study electronics courses are not simple and do not involve primarily manual skils.

Therefore, the statements and representations in Paragraphs Four and Five were and are false, mislcading, deceptive or unfair acts or practices.

PAR. 7. Respondents have offered for sale home study courses and have accepted students for enrollment on the basis of a high school education or its equivalent, without disclosing to prospective students: 1. That certain aptitudes or background are requisite for successful completion of such home study courses;

2. That a high school education or its equivalent does not necessarily insure that the prospective student has such requisite aptitudes or backgroynd; and 3. That respondents do not test or screen home study students to determine whether such students actually have the requisite aptitudes or background.

Disclosure of such facts to home study students would indicate to such students the significance of respondents' admission requirements and the probability of their completing such home study courses. Thus respondents have failed to disclose material facts which, if known to certain prospective students, would be likely to affect their consideration of whether to purchase such home study courses. Therefore, the aforesaid acts and practices were and are false misleading, deceptive or unfair acts or practices. PAR. 8. In the course of offering for sale and selling home study electronics courses, respondents have emphasized fun, simplicity and manual training, while understating, obscuring and failing to disclose the significance, nature and extent of written lessons and instructional 766 EDERAL TRADE COMMISSION DECISIONS Complaint 95 F.

material involved in such courses. The aforesaid representations and non-disclosures have deceived students with respect to the content and nature of home study electronics courses. Therefore, the aforesaid acts and practices were and are false, misleading, deceptive or unfair acts or practices.

PAR. 9. Through the use of the aforesaid advertisements, materials oral presentations and otherwise, and for the purpose of inducing the purchase of home study courses, respondents have degraded, debased or disparaged the present or potential career opportunities, education and training, self-image or other personal characteristics of prospective students. Further, respondents have represented, directly or by implication, that such prospective students can alter or improve such personal characteristics through respondents' home study courses. The effect of the aforesaid disparagements and representations has been to aggravate and continue the unfair and deceptive effect of the acts and practices set forth herein. Therefore, the aforesaid acts and practices of respondents were and are unfair acts or practices. PAR. 10. In the further course and conduct of their aforesaid business, respondents have assisted prospective students in making application or contracts for enrollment, deferred payment financing, benefits under VEAA, and loans under FISLP. In many instances respondents have made false, misleading or deceptive representations directly or by implication, relating to the information, terms, conditions and obligations contained in such contracts, applications and agreements or remaining thereunder upon termination of enrollment. In many instances respondents have failed to fully explain and disclose material facts regarding the terms and conditions of such forms and agreements.

The aforesaid acts of respondents have deceived students with respect to the nature, terms and conditions of contractual obligations veterans educational benefits, Federally Insured Student Loans, and other consequences of the contracts, applications and agreements. The deceptions resulting from the acts or practices described in this Paragraph Ten are continuing, in many instances, through the period of the students' enrollment and comcomitant deferred payment obligations.

Therefore, the aforesaid acts and practices of respondents were and are false, misleading, deceptive or unfair acts or practices. PAR. 11. In the further course of their aforesaid business, and at al1 times mentioned herein, respondents have offered for sale home study courses intended to train students for employment in certain positions or career fields without disclosing in their advertising and printed material or through their sales force members: 761 Complaint 1. the percentages of students recently completing the home study courses who were able to secure employment in the positions or career fields for which they were trained;

2. the initial salary received by such completing students; and 3. the percentage of recent students for each home study course offered that have failed to complete their courses of instruction. Knowledge of such facts by prospective students of respondents' home study courses would indicate that a significant number of students have not completed such courses and not secured employment. Thus, respondents have failed to disclose material facts which, if known to certain prospective students, would be likely to affect their consideration of whether to purchase such home study courses. Therefore, the aforesaid acts and practices were and are fa)se misleading, deceptive or unfair acts or practices. PAR. 12. In the further course and conduct of their aforesaid business, and in furtherance of their purpose of inducing prospective students to execute enrollment contracts for the purchase of their home study courses, respondents and their employees, sales force members, and representatives, through the use of the false, misleading and deceptive statements, representations and practices set forth herein in this complaint, have induced prospective students to execute enrollment contracts and deferred payment financing agreements upon initial contact without affording such students sufficient time to carefully consider the purchase of the home study course or the financing thereof. Therefore, the aforesaid acts and practices were and are unfair acts or practices.

PAR. 13. In the further course and conduct of their aforesaid business, respondents have made representations and entered into contracts with home study students whereby respondents arc obligated to provide and dc1iver, and such students are entitled to receive, in accord with their progress through the course, lessons and examinations, laboratory materials and equipment, tuition refunds upon cancellation, and certain services including, but not limited to, grading of lessons and examinations, and instruction or assistance through help sessions and telephone services. In many instances respondents have failed to provide or deliver such lessons, examinations, laboratory materials, equipment, tuition refunds and other services to home study students in a timely manner and in accord with the terms of the aforesaid contracts and representations. Such failures and delays on the part of respondents have impeded such students in their efforts to derive benefit from and progress through such home study courses and have resulted in inconvenience, expense and financial detriment to Complaint 95 F.

such students. Therefore, the aforesaid acts and practice of respondents were and are unfair acts or practices. PAR. 14. Through the false, misleading, deceptive, and unfair acts or practices herein set forth in this complaint, respondents have induced students and other persons or entities to pay, or contract to pay, to respondents substantial sums of money to purchase or pay for respondents' home study courses. In many instances such monies were paid to and received by respondents although such courses were of litte value to students. Respondents have received the aforesaid monies and have failed to offer or refund such sums to, or to rescind the contractual obligations of, many students and other persons or entities participating in the financing of such home study courses. By inducing students and other persons or entities to pay, or contract to pay, to respondents substantial sums of money for respondents' home study courses where such home study courses arc of little value to students and by failing to offer or refund such sums to, or to rescind the contractual obligations of many students and other persons or entities where such courses are of little value, respondents have engaged in unfair acts and practices.

Therefore, the said acts or practices constitute unfair acts or practices in violation of Section 5 of the Federal Trade Commission Act.

PART II PAR. 15. In the further course and conduct of their business as aforesaid, respondents have recruited and induced members of the general public to accept employment under written agreements and to sell respondents' home study courses. In the course of such recruitment respondents have published or caused to be published advertisements in newspapers of general and interstate circulation throughout the United States and have made oral presentations through their agents representatives, and employees. Through such publications, advertisements, oral presentations and otherwise, respondents have made statements and representations, directly or by implication, respecting earnings potential, sales territory, job security, sales quotas, companygenerated leads and other terms of the employment relationship in order to induce individuals to accept employment in respondents' sales force and to sell home study courses on behalf of respondents. PAR. 16. Furtbermore, respondents have, through the acts and practices described herein, recruited and induced persons to accept employment in respondents' sales force and to enter into as a condition 761 Complaint of such employment, written agreements and compensation schedules which include the following termination provisions, in substance: 1. Employment under this schedule may be terminated by either party at any time.

2. Termination of the representatives' employment with the company wil cause this (compensation) schedule to be cancelled and no amounts wil be considered earned or accrued after the last day of active employment, as shown by the company records, unless termination is for one of the following reasons: death, retirement (as defined hy the Beli & Howell profit sharing trust), or permanent total disabilty (as defined by the Bell & Howell group insurance master policy).

Through such contracts respondents have retained and exercised the power to unilaterally and substantially alter the terms of the employment relationship and the compensation received by sales force members. Included among such unilateral powers and practices, but not ali inclusive thereof, are the foliowing: 1. Respondents have arbitrarily and without cause denied, altered or periodically withheld sales leads from sales force members, thereby hindering such sales force members in obtaining enrolIments and fulfiling the sales quotas or other performance requirements set by respondents.

2. Respondents have arbitrarily and unilaterally altered or increased the sales quotas and performance requiremcnts. 3. Respondents have arhitrarily and unilaterally altered and reformed the commission schedule and other payment schedules, for the purpose of inducing or coercing such sales force members to fulfil increasingly higher sales quotas and other performance requirements. 4. Respondents have used various threats and forms of coercion against their sales force members, including but not limited to probation, termination, and restriction of sales leads, to coerce sales force members to comply with sales quotas and performance requirements.

As a result of the aforesaid powers and practices, respondents have in many instances, induced or coerced sales force members to terminate employment; and respondents have therchy caused such terminated sales force members to forfeit earned compensation accordance with thc terms and conditions of the written agreements and compensation schedulcs.

The failure of respondents to make payment of earned compensation Complaint 95 F.

to sales force members at termination does unjustly enrich respondents and is unfair.

Therefore, the said acts and practices constitute unfair acts or practices in violation of Section 5 of the Federal Trade Commission Act.

PAR. 17. At the time of the false, misleading, deceptive, and unfair acts or practices set forth in this complaint, and as a result thereof respondents have received certain complaints, reports and information from their home study students, sales force members and other persons, and from surveys and studies conducted by or on behalf of respondents, which indicated or reported the occurrence, causes, or results of sucb acts or practices. At the time of such complaints, reports or information respondents were engaged in the courses of conduct and business behavior herein set forth in Paragrapbs Fifteen and Sixteen of this complaint.

Respondents have received the aforesaid complaints, reports and information and have continued to engage in the aforesaid courses of conduct and business behavior and have continued to enroll large numbers of home study students.

PAR. 18. The effect of the courses of conduct and business behavior set forth in Paragraph Fifteen through Seventeen herein, and the continuation of such conduct and business behavior, has been to aggravate and continue the unfair and deceptive effect of the acts and practices of respondents as alleged in Parts I and III of this complaint. Therefore, engaging and continuing in such courses of conduct and business behavior is an unfair act or practice in violation of Section 5 of the Federal Trade Commission Act.

PART II PAR. 19. In the further course and conduct of their aforesaid business, respondents have advertised and promoted the availability of educational benefits under the Veterans Educational Assistance Act 38 D. C. 1651 , et seq. ("VEAA"), as an inducement to veterans to purchase and pay for respondents' home study courses. Said Act allows each eligible veteran to "select a program of education to assist him in attaining an educational, professional or vocational objective at any educational institution (approved in accordance with the terms of the Act) selected by him. " 38 D. C. 1670. Rules promulgated by the Veterans Administration to carry out the policy and purpses of the VEAA further provide that programs of education wil be approved for veterans educational benefits where "the veteran is not already ;., ., ;. . . # , .. ,. ;, ,., . . ,,,.. y.. . . , . ,. . p j, .... . ;#,.,.,., ,,, & ...,., :,,,., ,,,.. ;.., (\ , , ,,\,...\ ..,; ; . , .;.,,, p. .,,..,,,,,,,,,,., .,,, .,? .,, :,,, ;,.,... .,,..,., . ,,,.,, .,.,. . ..... ..,,.& ..... .,. ,.,, .. ..., ....,,,,,,,,. ,,,,.,, ,,, ,:;,,,, ,,:,., ,;.,,, ,,,,., .,.,; ..,,,,., , ,.. ,,,..,,, \,. ,,.,.. ,.;:::..,,..,, .. .. ,,,.. (\.,,.\ ., , .,.,. .,. ; ,,......,..,, .. .# .,.. .. \ .,... .. .,:.,. ..,.,. .,. .. ,._.,,,,.., p: . \,., ....;;..... ,, ,, ,,... .. p,,,.; . ,. ,,, . ,.. . . .. .. :\\o1\ 1" "e (\ 0 CO",v ,,'pe '" "1' ", ,,1' e'p" Ii\- 'p,e ",o~1'e e",e1' o e"' ,,'pe "\v I). e" 'I" ,,\1'p 'p fd 'I'' "cP 'p"" 'I e",,,e 'I.,, 1''' lie",0 i'''' ",01" "e .,,.i''' i "":M :: ' ''Y..",;, \,0 ,0 ." . 0" '" 0 ,, -'f"" . 1"' . W' , Y' ""

,W' , .: '" .. if, ,,0 " W" '" '" ,W '" V . W ,- '" ,. o , ,W' '" V'" . cP' , ", _0 '0 " O' "" O' . '0 '" ", .0 . '0 ",0 .' 0 "" ", ""'1" ., v 0# '" ,''' ,,0 '" "' . '" ,d, '0 W'o o# .",0",0 .. ..0 . '" V 0 .0 eo1' e1'"Ce, " ,,'pe ",01' 0# \. 'V' "",,,\'j 'pe eio'" ,1' C' "",e ,,'pe ",'p,e (\ ,1' \1'" "e e'" \e\1e(\ io (\ ,,\' ,,,ee .X\ '" ,,'pe ee l' 'pO o :\1' "" J''j " "e . e"' ",e (\e1'. "e e ",e'" ,,1''''p'j ,J''l"\'(\e 1' 01' \' 1' e"''' ,,0 e 'I 'Ce$ 1. e.. "', "",e ,1" ,," :0\' ,,'pe 't. Decision and Order 95 F.

unfair or deceptive statements, representations, acts and practices has had, and now has, the tendency and capacity to mislead and deceive a substantial portion of members of the general public in the erroneous and mistaken belief that said statements and representations were and are, true and complete, and to induce a substantial numbr thereof to purchase respondents' courses or to accept employment under written agreements and to sell home study courses for the benefit of respondents by reason of said erroneous and mistaken beliefs. PAR. 23. The aforesaid acts and practices of respondents, as herein alleged, were and are all to the prejudice and injury of the public and constituted, and now constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5 of the Federal Trade Commission Act.

DECISION AND ORDER The Commission having heretofore issued its complaint charging the respondents named in the caption hereof with violation of Section 5 of the Federal Trade Commission Act, as amended, and the respondents having been served with a copy of that complaint, together with a notice of contemplated relief; and The respondents, their counsel, and counsel for the Commission having thereafter executed an agreement containing a consent order an admission by the respondents of all the jurisdictional facts set forth in the complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission s Rules; and The Commission having considered the matter and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, and having duly considered the comments filed thereafter by interested persons pursuant to Section 3.25 of its Rules, now in further conformity with the procedure prescribed in Section 3.25(f) of its Rules, the Commission hereby makes the following jurisdictional findings and enters the following order:

1. Respondent Bell & Howell Company is a corporation organized existing and doing business under and by virtue of the laws of the State of Delaware, with its principal office and place of business located at 7100 McCormick Ave., Lincolnwood, Ilinois. Respondent Bell & Howell Schools, Inc. is a corporation organized existing and doing business under and by virtue of the laws of the BELL & HOWELL CO., ET AL. 773 761 Decision and Order State of Ilinois, with its principal offce and place of business located at 2201 West Howard, Evanston, Ilinois.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent!, and the proceeding is in the public interest.

ORDER It is ordered That respondents Bell & Howell Company, a corporation, and Bell & Howell Schools, Inc., a corporation, their successors and assigns and their agents, and respondents' agents, representatives and employees, directly or through any corpration, subsidiary, division, franchise or other device in connection with the advertising, promoting, offering for sale, sale or distribution of home study courses home study training or home study instruction in the fields of accounting, television repair, electronics, or any other subject, trade or vocation in or affecting commerce, as "commerce 71 is defined in the Federal Trade Commission Act, as amended, do forthwith cease and desist from:

1. Representing, orally, visually, in writing or in any other manner directly or by implication, that:

(a) There is a significant or substantial need or demand for persons completing any of respondents' courses offered in the fields of accounting, television repair, electronics, or any other field or otherwise representing that significant or substantial opportunities for employment, or significant or substantial opportunities of any other type, are available to such persons, or that persons completing said courses wil or may earn a specified amount of money, or otherwise representing by any means the prospective earnings of such persons unless such representations are accompanied by a written disclosure form which contains the following information under the heading Placement Record" in the format prescribed in Appendix A and for the most recently completed base period designated as described in Appendix B:

within four (1) the number and percentage of graduates who, months of leaving the course, obtained employment in jobs for which the course prepared them;

(2) the number of these graduates by their yearly gross salary, in increments of two thousand dollars ($2 000); (3) the percentage of these graduates within each salary increment to the total number of graduates;

,. ,.: , (., , . . ; , ,, ..,\; ),, (.) ,,.. . . ,. . ,,,.. .... ., . .... ,,.,,, ,,,,, ,,,,,,. & .:; :... .... ,,,. , ..,... ! .,,,,,,.. ;: .. . ,,,,,.,....;...,,,...,. ,..,.,. ,,,,.,, ,,...... ,.,., ..., ;; ;.,.. ;,:,..,, : ,,. .,..:.,.. ..:::,!...... , ..::;::..,;:....... ,,,,..,,, ..;:: ... ,:,..... ,,,,#.,; .,...,,,,,,..;., . ,...,.... :.. .. , ..,.;.. ..,..,..:;,...,.,,...,., ,,.. ,,, ;, , , . ,, :.. .,....... .;;, ,., . . ;:.. : , , . .,. . .. . ,.,. , .. .. ,. . ,. . \$\O .;"" 0 .,"; "'1' \"J"ce" """"? 0 J" ""Ii 1tV" . -::'t" l" ., ," ?,"':' ,.a''' ? . nO other", . ..,,\,b' \,J"esc1"P" Ii J"e,\\l\J" . cOuJ"s" " \,0& C\OS\lJ"C \,cJ"od tb '" W ,W ,..

" ,,,e t\e\d. '/ \O",e' \" ,,,e "" jo '''' 0' ' ,.,;t,"' 00' "" ot ,,. "., ot, 1tcnt ,n \SJ"c\,J"Cscn ' \n "'.- ' ,,\S\l" W' ..0' J"c\,,,\J", c\CctJ"on . IJ OJ""\\ g"" -".W" OJ" ot .,'. 0- 'J N"nlicn\. 1i\J"cct\ '" ot "' ..,0 0: "' t 0' ' oW ., " 0 s\tto"S \ '" ''' '; ,. 0 t "' . n. C" .. tbc success \,oS\ \0 "" ,..", ot Ii tes \n '" ott""t "f ",,t.. ,0 '" .,W' OJ" t\ons OJ" scj"\cc cJ"S SC:i\... c\CctJ"on\cS'- c1t\,,.,,,t "" '0 , to'"t\nlJ OJ" \n . X\ ' .d, cc1"cnt scj"\cc. ,,\su,,\\' \n ';nlJ oJ"" ""J"son"" licnts \''' .." ".C. , \)\C OJ" '" 5--re a. \1t\'" 1i\J"ect\ 0 ",,\\,, SCSS\Ons \.,,) 1\cW 761 Decision and Order assistance are provided to respondents' home study students, unless regarding help sessions, any representation is accompanied by statement which clearly and fully discloses the time, dates, and locations of help sessions scheduled for the location in which such representation is made for the 12-month period immediately following such representation; provUkd, Iwever that if any changes are made in the time or location of help sessions, all students shall be notified of such changes within 30 days.

(b) Instruction or assistance is available to home study students through telephone services provided by respondents, unless any representation regarding telephone services is accompanied by a statement which clearly and fully discloses the time of operation of such telephone services, discloses whether use of such telephone service is at the student's expense, and informs the student that ineoming telephone lines might be busy.

4. Failing to disclose, in writing, clearly and conspicuously, prior to the signing of any contract, to any prospective enrollee in any course of instruction offered hy respondents, the admission criteria, if any, required for enrollment in the school, the number of wrtten lessons required to be submitted by the student, the educational or oceupational background needed for successful completion of the course, and if a representation is made that equipment will be furnished in the course the number of written lessons that must be completed before the student receives any equipment furnished in the course. 5. Failing to disclose, in writing, clearly and conspicuously, prior to the signing of any contract, to any prospective enrollee in any accounting course offered by respondents, the following information in the following form:

(a) The title "IMPORTANT INFORMATION " printed in ten (10) point bold face type across the top of the form.

(b) Paragraphs providing the following information: (1) Many employers of accountants require accountant-applicants to have a college degree or prior work experience in the field of ounting.

(2) Many employers of accountants give preferential consideration in hiring to accountant-applicants who are Certified Public Accountants (CP As). Each of the 50 states has different requirements for the CPA examination. Before you enroll in this course, be sure to check with the Secretary of the State Board of Accountancy of your state to determine whether, after you ve graduated from this course, you will be qualified to take the CPA examination.

Decision and Order 95 F.

6. Failing to disclose, in wrting, clearly and conspicuously, prior to the signing of any contract, to any prospective enrollee in any television repair or electronics course offered by respondents, the following information in the following form: (a) The title "IMPORTANT INFORMATION" printed in ten (10) point bold face typ across the top of the form.

(h) Paragraphs providing the following information: (I) Many employers of television repairmen or electronics technicians require applicants to have additional educational experience and/or previous occupational experience in the field of electronics. (2) If you intend to open your own television or electronics entertainment equipment repair shop, you may need more training and experience than this course wil give you.

7. Failng to keep adequate records which may be inspected by Commission staff members upon re3.30nable notice which substantiate the data and information required to be disclosed by Part I, Paragraphs I(a) and 8 of this order and prescribed in Appendix A. 8. Failing to disclose, in writing, clearly and conspicuously, prior to the signing of any contract, to any prospective enrollee in any course of instruction in the fields of accounting, television repair, electronics or any other subject, trade or vocation offered by respondents, the following information in the format prescribed in Appendix A and for a base period designated as described in Appendix B: (a) the number of students who enrolled in that period; (b) the number and percentage of such students who were graduated during that period;

(c) the number and percentage of such students whose course of study was terminated during that period; and (d) The number and percentage of such students who remained actively enrolled at the end of that period. 9. (a) Contracting for the sale of any course of instruction in the field of accounting, television repair, electronics or any other subject trade or vocation in the form of a sales contract or any other agreement which does not contain on the front page of the contract in bold face type of a minimum si7.e of ten (10) points, a statement in the following form:

If You Chanve Your Mind After you sign this contract, we wil send you a Disclosure Form that will telJ you how many of our students graduate and get jobs. At the same time, we will mail you another disclosure form headed "If You Change Your Mind." Vou should know that if we mail BELL & HOWELL CO., ET AL. 777 761 Decision and Order you this disclosure form this means that we have accpte you as a student. If we don send you both of these forms in the mah, this contract is automatically cancelled and you don t owe us anything.

If you have changed your mind, you have fourtn days to get out of this contract. The fourten days start on the day that we mail the disclosure forms, but you can cancel before then. AU you have to do is sign the cancellation notice on the bottom of this pageyou or the disclosure fann, put a date on it, and mail it to us by midnight of the fournth day after the disclosure form is mated to you. The disclosure form will tell you when your fourten days are up.

If you want, you can also send a letter of your own during this fourn day period that says you want to get out of this contract. Be sure that you sign and date the letter. If possible, keep a copy. Your contract will be cancelled the day you mail us the wrtten notice.

If you decide not to take this. cours during this fourten day period, we will send you a full refund of any money that you have paid. Once we know that you have decided not to take the course, we wil return your money within two weeks from the day we reive notice of your cancellation.

(b) Failng to place at the bottom of the first page of the enrollment contract the following detachable cancellation notice: I've changed my mind and am getting out of the contract. Date (Student' s Signature) (c) Failing to mail to the student, after the school has accepted the enrollment contract, the disclosure of the school's graduation and placement rate, as required by Part I, Paragraph 8 herein, and, on a separate sheet of paper, the following dated notice, as required by Part , Paragraph 9(a).

If Y OIJ Chanve Your Mind If you have changed your mind, you have fourten days to get out of this contract. Thes fourten days wil end at midnight on (14 days from the day notice is. mailed). All you have to do is. sign this paper on the bottom, put a date on it, and mail it bak to us by this date. Your contract wil be cancelled the day you mail this notice back to us. If you decide not to take this cours during this fourten day period, we will send you a full refund of any money that you have paid. Once we know that you have decided not to take the course we will return your money within two weeks from the time we reive notice of your cancellation.

If you change your mind and want to get out of this contract after you have start the course, you will owe the school some money. Se the part of the contract caned "Refund In the Event of Termination After You Start the Cours" for an explanation of your rights to cancel after the cours has start. I've changed my mind and am getting out of the contract. Date (Student' s signature) Decision . and Order 95 F.

(d) Failing to orally inform each Prospective enrollee that a right to cancel at the time helshe signs a contract or agreement hasfor the sale of any course of instruction. helshe (e) Misrepresenting in any manner the prospective enrollee cancel. s right to (f) Failing or refusing to refund all contract or sale and cancel and return anypaymentsnegotiablemade under the executed by the prospective enroUee in connection with the contractinstrumentor sale, to the prospective enrollee within after receipt of such notice of canceUation. fourten (14) business days 10. (a) Contracting for the field of accounting, television repairsale of any Course of instruction in the trade or vocation in the form of, electronicsa or any other subject agreement which does not contain on thesalesfront pagecontractof theorenroUmentany other contract, immediately fonowing the disclosure notice required by Part , Paragraph 9(a) herein, the fonowing statement: In nt nnin n Af r YouStartt eC,onrne If yau change your mind after this time. All you have to do is send or gifourten day period, you can stil drop this want to drop thecoure. e us a letter signed and dated by you thatcoursays youany If possible, you should keep a copy of the letter. The day you send us this letter dropped the cours.

, you If you do drop out, you stil will have to pay for the lessons you sent in. We amount you Owe us like this. Tbe price per lesson is $ number ofIesso", you sent in. We add $ ll figure the . We multiply this by the OWens. registration fee. The total is what you If you ve already paid more, we ll refund you the difference within 28 days after We receive the Jetter. (b) Receiving, demanding or. retaining of the total contract price plus a registrationmore.feethanain anproamountrata portionnot to exceed $75 in the event a student cancels his course in accordance with the terms of. this paragraph calculated in the following manner:, and such pro rata . portion will be (1) the.chool must calculate the number of lessons received from the student before the student's cancellation; (2) this number must be divided by the total number of required to complete the Course; and lessons (3) the resulting number shaU be multiplied by the total contractprice. (c) Failing to provide the student with the correct reflJnd payment any, or to cancel that portion of the student' , if s indebtedness that l:H!..r.L & t1UW LL Liu-, 1!T AL. 779 761 Decision and Order exceeds the amount due the school, within twenty-one (21) days of the receipt of cancellation pursuant to this paragraph. (d) Failing to orally inform each prospective enrollee that there is a refund policy in the event the student cancels his course of instruction prior to completion of the course of instruction. (e) Misrepresenting in any manner the nature of the prospective enrollee s tuition obligation and right to a refund upon cancellation. I!. Misrepresenting, orally, visually, in writing or in any other manner, directly or by implication that respondents' courses are endorsed by the Veteran s Administration, HEW or any Government Agency or Department; or misrepresenting in any manner the extent or nature of any approval or other form of government action taken with respect to any school or course of instruction. 12. In the event the Commission promulgates a final Trade Regulation Rule on Advertising, Disclosure, Cooling-Off and Refund Requirements Concerning Proprietary Vocational and Home Study Schools, then, so long as and to the extent that such Rule shall be in effect, such Trade Regulation Rule shall completely supersede and replace the provisions of this order set forth in Part I, Paragraphs l(a), , 8, 9 and 10, provided that if no provision of the Trade Regulation Rule relates in whole or in part to any matter covered by provisions of one of the aforesaid Paragraphs of this order, then said provisions of said Paragraph shall remain in full force and effect. It is furtlwr ordered That:

1. Respondents deliver a copy of this decision and order to each of its present and future employees, salesmen, agents, solicitors, indepen-, dent contractors or to any other person or entity who promotes, offers for sale, sells or distributes (hereinafter referred to as "sells ) any course of home study instruction included within the scope of this order.

2. Respondents provide each person or entity described in Part lI Paragraph 1 of this order with a form returnable to the respondents clearly stating his or her intention to be bound by and to conform his or her business practices to the requirements of this order; retain said statement during the period said person or entity is so employed and for a period of five (5) years thereafter; and make said statement available to the Commission s staff for inspection and copying upon request.

3. Respondents inform each person or entity described in Part lI Dccision and Order 95 F.

Paragraph I of this order that the respondent will not employ or wil terminate the employment of any such person or entity in sellng such home study courses, unless such party agrees to and does file notice with the respondents that he or she will be bound by the provisions contained in this order.

4. If a person or entity described in Part II, Paragraph 1 of this order will not agree to file with respondents the notice set forth in Part , Paragraph 2 of this order and be bound by the provisions of the order, respondents shall not employ or continue the employment of such person or entity to sell any course of instruction covered by this order.

5. Respondents inform the persons or entities described in Part II Paragraph 1 of this order that respondents are obligated by this order to discontinue dealing with or to terminate the employment in selling their courses of persons or entities who continue on their own the acts or practices probibited by this order.

6. Respondents discontinue dealing with or terminate the employment in selling the courses of any person or entity described in Part II Paragraph I of this order, who continues on his or her own any act or practice prohibited by this order.

7. Respondents shall forthwith distribute a copy of this order to each of its divisions or subsidiary corporations which is involved in the advertising, promotion or sale of any home study course of instrucUon included within the scope of this order.

It is further ordered That:

1. Respondents shall not issue any instructions or directions respecting the Escrow Account to the Federal Trade Commission or its designee, or the Escrow Agent in the performance of their duties pursuant to this Agreement and the Escrow Instructions attached hereto as Appendix C and incorporated herein, including but not limited to, investment of the Property held by the Escrow Agent determination of purchasers pursuant to Part IV of this order and the written directions of the Federal Trade Commission or its designee, or disbursement of the Property by the Escrow Agent. Respondents shall not exercise any control over the property in the Escrow Account. 2. Respondents shall provide the Federal Trade Commission or its designee access on respondents' premises to any student file folders maintained by respondents, provided the Federal Trade Commission has the consent of the students whose files are sought for inspection. LH:.LHJ U( L.lvn.cuu '-V. .rl A.l.

761 Decision and Order It is further ordered That:

1. For the purposes of Part IV of this order, the following definitions shall apply:

(a) The term "Purchasers" shall mean those students who paid all or some portion of their own tuition to respondents and who did not have their tuition paid in full or their payments fully reimbursed, by any federal, state or local government agency or department, or any private business organization, other than one that he/she owns; (b) The term "Relevant Period" shall mean the period commencing May 27 1974 to the present.

(e) A purchaser shall be deemed to be covered by the relevant period if such purchaser:

(1) enrolled in a Bell & Howell Schools, Inc. electronics or accounting home study course during the relevant period; or (2) enrolled in a Bell & Howell Schools, Inc. electronics or accounting home study course after January I, 1971 and made any tuition payment during the relevant period to Bell & Howell Schools, Inc. or to any person or entity on account of any such course. 2. Respondents shall submit to the Chicago Regional Office of the Federal Trade Commission, within thirty (30) days after the date this order is served on respondents, a notarized affidavit executed by a duly authorized officer of respondents, to the effect that respondents have made a good faith search of documents that pertin to purchasers of respondents' accounting, television repair . and electronics courses of instruction, and that respondents, to the best of their knowledge, have previously or simultaneously with said affidavit submitted to the Chicago Regional Office of the Federal Trade Commission the names and most current known addresses of all such purchasers who enrolled in said courses after January 1, 1971.

3. The Federal Trade Commission has determined that purchasers who may be eligible to receive refunds from the Escrow Account are those purchasers who in the relevant period: (a) (1) Enrolled in the course for the purpose of obtaining employment in their fields of instruction; and (2) Successfully completed 100% of the lessons in the course; and (3) Sought employment in their fields of instructions; and (4) Did not obtain employment in their fields of instruction. (b) (I) Terminated, or were terminated, from their course of instruction prior to completion of 100% of the lessons because: Decision and Order 95 F. T. (a) They were unable to successfully assimilate the subject matter of the course because they lacked adequate. education or background; or (b) They were unable to successfully assimilate the subject matter of the course because they could not obtain instructional assistance through help sessions, or telephone services, or requests for technical consultation and they indicate that such assistance was necessary to progress through the course; or (c) They were unable to devote sufficient time to study for the course.

(c) (I) Enrolled in an accounting course with the expetation that they would be qualified by graduation from the course to take the state licensing examination to become a Certified Public Accountant in the state in which the purchasers resided; and (2) Later determined that they were not thereby qualified to take the state licensing examination to become a Certified Public Accountant in the state in which they resided as of the date of the sales presentation, and (3) Indicate that they terminated from the course of instruction because, or determined after graduation that, they were not thereby qualified to take the state licensing examination to become a Certified Puhlic Accountant.

(d) (I) Were misled as to the cost of the course of instruction which would have to be borne by the purchasers or as to the refund policy of Bell & Howell Schools, Inc. in the event such purchasers terminated their enrollment in such course; and (2) Terminated, or were terminated, from the course of instruction prior to completion of 100% of the lessons of the course. (e) (1) Were terminated from their courses of instruction because the purchasers failed to submit lessons in a timely manner to Bell & Howell Schools, Inc. ; and (2) Indicated that the reason for their delay was that Bell & Howell Schools, Ine. failed to supply equipment or lessons to the purchasers as represented in its advertisements; sales presentation, or enrollment contracts.

(f) (1) Enrolled in the course for the purpose of obtaining employment in their fields of instruction; and (2) Terminated from the course of instruction because they were informed that such course was not adequate to prepare them for employment in the fields for which such course offered training. 4. The fact that a purchaser is canvassed does not itself mean that such purchaser wil receive a refund. The Federal Trade Commission or its designee shall determine which purchasers shall be entitled to a BELL & HOWELL CO., ET AL. 783 761 Decision and Order refund and the amount to be paid such purchasers; provUkd, hoever that such refund shall be based upon no more than the amount of the purchaser s tuition obligation not paid or reimbursed by any federal state or local government agency or department, or any private business organization, other than one that he/she owns. In no event shah any purchaser receive an amount greater than his/her tuition obligation less his/her reimbursement or other payment from the aforementioned agencies, departments or organizations. Such refunds shall be paid out of the Escrow Account established pursuant to Paragraphs 9 through 13 and Part III of this order. 5. No purchasers shah be deemed by respondents to have waived any claim that they may have, or may hereafter have, against respondents, their successors and assigns, arising in any manner whatsoever from enroHment in any of respondents' home study courses prior to January 21 , 1976, unless such purchasers accept a refund pursuant to Part IV of this order. Acceptance of a refund pursuant to Part IV of this order wih be a bar to assertion of any such claim. It is further ordered That respondents maintain for a period of ten (10) years, records which shah show the manner and form of respondents' continuing compliance with the above terms and provisions of this order.

It is further ordered That respondents notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondents such as dissolution, assignment, or sale resulting in the emergence of a successor corporation or corprations the creation or dissolution of subsidiaries or any other change in the corporations which may affect compliance obligations arising out of the order; provided, hoever that if respondents do not have thirty (30) days lead time between proposal of such change and its consummation, respondents shah notify the Commission thereof at the earliest feasible time before consummation and any entity which may succeed to any part of the business covered by this order wil have been advised of every provision of this order and wil have agreed to be bound thereby. VII It is further ordered That the respondents herein shah within sixty (60) days after service upon them of this order, file with the ::::

APPENDIX SCHOOL - Drafting c"ur ;' and E rd for students enrolled hetw"," January L 1974 and .Tanuar 197 I. Griuation ' Re.org 100 students enrolled.

50 students graduate. That' 30 students didn 50%of the clas. t finish the COUrse. 20 'students ate stil enrlled. That' That' 830% of the clas. s 20 of the clas.

II. PJar'pment. Re.ord 36 grduate have told us that they got jobs in drafting within four months of Jeaving schoot.. That' s 7Z% of thos who graduate. Here's what they earned: 9 eared 11 eaed $6O7!J. (18% of all gruate) $6O99. (22 of all gruates) 7 eared $10 0011 99. (14% of all 7 earned $12 grduate) 99. (14% of all grduates) 2refuaed tatcH us0013what their saJar was (4%of aHgruate) Appendix B The first Bas Period shall the two (2) year period ending effective date of this Order. Suhseuent has period shall bethrof two(3) months(2) yearpriordurationto the commencing on the next day following the termination of the prior Period shall be numbere COo.utively beginning with the first bas period (i. ba period. Bas Period #1) as defined above. e. Bas The thre (3) month period immediately following the by respondents to close of a bas compile the information period .shall be use 8 and Appendix A.rerdIn additionand requir by Part students for the bas period any, persnrespondentswhos enrollmentmay not includeterminatein theduringI,computationParagrphthe l(a)of (3) month reordation period: Such persons will be included in the statistics for the subsequent bas period. thr On the first business day fallng more than three (3) months after base period, respondents shall begin diSSmination of that hase theperiod'termnation of the . Stod," moy drop ..t", 0 s statistics as wo=do the work fo.",y of .'rnl orpcrsl1l1l rens. .. (Optio""j So"" ("'",y) of 00. ""m 000' '" d""ti"f tlo" withth, ro"" '''''Uty .to'"" d,, t ta, the. ro""to..t 0orour gruate to find out whether they joh, Md - w're o"'hl, to got jobs. -h ,,, BELL & HOWELL CO., ET AL.

761 Decision and Order required by this Order. Respondents shall continue to distribute said statistics until the first business day falling three (3) months after the termination of the next bas period at which time dissemination of the next set of bas period statistics must begin. The following example describes how the two (2) year base period and thr (3) month recordation period win be utilized by the respondents: Base Period 1 will cover that period which begins two (2) yea and 90 days prior to the effective date of the Order. If the Order is effective October 1, 1978, the base period will encompass the period June I, to June 30, 1978. Repondents will then have from July 1 to September 3D, 1978 to compile the data reuired by the Order. Repondents wil disseminate the gathered data on October 1. Base Period 2 would begin on July I, 1978 and end July 30, 1980. From August 1 to October 31 respondents would compile the data reuired by the Order. This data is to be disseminated on the first busines day after November 1. , !;: . ,, ;;.:: ! ;,,). . . , ..:. :. .,..:. .::.:;:: .; . :;:; :: .. ,,.,., :.::, ;::::::::. ,,.,..,..;;:,: ! ,, .,. . ,p:,::.:;:,.:.:::. ::::, .:: ...,,.: :,?.::::::;::;::::::::,,.::.. :: .,,,, ...: :::::::, ,;.,::::,., .:::: ,.,,,.,:::.,. . , , .;.,...:..,!::!:.,;, :;: . , ,, . .....,.. .. . . .. ,., . ,. . ;(.Ol 4qP ,,se .r.. !::e 0-:' ;:S;: c.""

,'o . .

:"SS " c'O?'" ' "O"

.po' .1" 0' :0 ... 0.,0' 0 0"

c-" ,.,,0'" ' ,0". ., ::,,0 f)!:, '" P 0 ..,.."

- c,t 1.-:Jo !; c :o,::.e -. - . . . , ;-a .:

c:.:;":.

.:::::::::.:::::::;::::::.:::., :::..,.:: :::.,,:.;:::,,;:..:.:::..:::,:::\;;::.::. . . ?:::;:::!:::: ::.:::::...:...::?:; ..!::;.::::;;:(;.:.::,,;:.,. :::,:.:;;:::::::..:j:::_;:..,:j,,::::. :.: ..::::::::::.::::::..::!,...:.;:::::.:.:::::::?:::;:::. :::::.::::::::::::::::::;;::::.. ,::::: ::.:..: . .:.,::;,,::::::.::;;, :::;::.. . ,;:_::::...., ;:::::..;.:::!::_..:::..::..::::.::::.!:::::::::::::::.,....:..::::.:::::_::: VI'LiLi u. J.J.v....

761 Decision and Order .- o S:: : J;:: :::,.. .- --_n ::: s 0 ,, I! : - - :::: :::: s ::;, -i: ::C e s ::: ;C :)II .11: ::: ti ?::: ::I :::..:ee t:'- (J :. e :: 1 :: t c.:::! . e:: e:::: . YC;J !:'e l ::e :: e 9::: : 1.::1 C::::. ::y. 1...., c;'- t"es ::::5:5 ,,C e :'Sts. "'1 :: te:' :"" C:: :::.. e:.:: :J t :::-..e t::c :: e-r. (3 /li ;:e..:- S'c:::c':. :I ::: s ?t::IS::t h t:: ;:t:.. :e;: ":II:: :.. ""::-:0," '..ll: ::t .. c:!= e:: : r:::?e:-:! ;:u.:t :: :::'6 "= :::It:: c:::tC:::I:;' 0.: e. C! :7:: C: ;:r:S:::;::d!.

..:'1: O! :-:: ::: ::. C:"s:.,= ee . es :'.c: "'. -: i-: :-11.. ::e':e: :J"': :. :::: "-c="-;:: :::" ::t= c:: :, ':0 Ce. e t S-: sr.

e. ;::::. :.:.e ::. - A ; ;:'o' ::t O:"f 1. C;:-:.:.

's t -:e: ;t:e:.::= a; ' :c -::: e c r C: ':::.1 :: "11 AS;"" t::: U;::;-. ::::e;.?=- c: 01: 1"'- s': ;:.e :: s : c. 5::: =: ::O- -: 0::::5 c:: ,; J:. S::s:: GQv..=:.:, ;5 :::"s. ': t,- . ;: e t::::: c::.= :::. ::;.;os t r. :::C::"'t. e:.c;:::u: c: '; 5::'-:. S:::; :: ::C:y;,,, ce1;t=. ::" 5."'=- . ::: s..:: ",r"f c:- "' ;t ?: ::;:,,:::' ;:: l:::: t:: ::.: : i :' t:- ,, ?:::: .I'' 5 i:-. C'::;.: Ct:;::' ::.:::es :: ,;C ::: c:::; ,t:::':::-.s :: 5:: e t.. :.:: Ii t c:, I.. 1: ,:'1 ;cr c: : . e ,,;::- i:":: ::-. ;; ;c::,.e::. u_'--- ---_n_ . u J::= t: c.: J, t. I . : : . .::: ::.;&:; ::$:;. : : y:;.::::;, ;;;::: ::; :.::. . !:.:&:.:::::: :: . :::.. :;.::, :;;:.;::.:; . ...,..;::.:::::.::::::;:.::. ::;: .:: .., Decision and Order 95 F.

veJ e :==c.. t;::. r- ,:;-. I!.

.:::s. c .;J:::II :.:::;-,. :!::'' :0. :1::::. e:..sst.';'J :.0 ,.11 ?:::;:ot:;::" :=:-'=:::"1 .._ i::..' .s: -:::t ;:=OC8.::' :' e':::-.e:: :::' D: =,,=: !':.c;:o., :.: c.t;:s:,: 0:: :=.li;l.t::c=:1 c: ::. . :;:1:::.-:Sl:::., G.:ve=:..e:l't 0: :.':. _o;e::cio,. y:n = J cO so You will I. , t 1 :0: t . C: t::t -:h. r: or its c.e,:.:;::.., ":y ca.s:: I-:;c. "Sle: I:A:'''e:::., 0: :, .,c:::w I.c:: ::t.

:::0 't e e" I1:".: Cle !" ='::1:=:1 1o to LAt = .:;kl :;.1. ':0 i.. :...i=\,.:! r'urc:-.&loe:1 0: it.!! " ifc,".:'! S:::.col.a, 1;:1:. . st-.= c:: rJ.1 .IC .ck 1::..11 =. . !c1.1:;"-:;: ion en e =, c! :i! ou c;,:; sir;;)c:= .:e::e' ':S h. ::..1:1" t.::-: :. "" a:. u? :;1:11':11:; 11!:;1L1. ::..,::: ::CI: :;11:, -::1 a"!!::;; 1::-. c:lt.:;: .t:;l.i::s: C: -:;; s-.e e:!:! , ::,;l.., !:-. lei1 i Iic,,'.1.1 Cc::-;a.:-.:'. or: ,::11:'= ,-'C:;31:)C:' or ..r. lit 1I::::JIl ';0 J'our e:::::l::- 1?'I:t't ?::.:o: to';1.:-. 1:1::: 21, !t97;) 1:. hc;:e :I' cc..:;ae 0: ::1:1': .. :-;c", cl1 !:C :;otl. !:)c. c,c:;::.. i:1J1;;=-c;;i:; JY =e to.::;, y II C::C="-;lto c.;ly ,,xe::"":iI . C:=?;I .::c. ;;:-.4 :-:C 0:; i:os (;t,.:",,,e. er::lt.l,,c R t::':;"I.:-. :; ;;:: ::.::::;1- ::H;t.::'.;::t.:':::'. i:: ,CU Ac l..': e =e::' r't, 0-: s.c': 1: t e i'C c!otci e.l ::: CI!:):''O:'ce. "!'J-" \Jill :'. /C ::': :0 , CC$ e=:, ;cu ce:-:1.::.eC: CO?~ o! e Ct C: -::-.e r-:; :";C::- :: p,;..,.,.:.:.:,,y,......:; ,:.: .,;.:;.:..:;::.:.:,,,,,,..,,,;..,.....;;:,,,..,,,.:....._,,_:;., .::; .;. ,...;,..:;....;::...;..:;.;:.:.,,.(.,,;:::;.;,...,.:..,,,,: ...?;. ....;:,,::.,.,.:.,...... .,..,..,.::;::_,. ,.....: ..;..:::,..,,,:;.,.,.: . :;:;,,,;:.,,:,.,..,,j,,.:.;, ;;;..:...,,,./.j...,..,::..:. , .:..,..:.,.::,: ;;..,.....,,;;. :;:....:,;..: ,, ,,:.:!.:, ::,,:;......,,..;..:,:,;.,,;:..,;,. ...p..,,,::..:::....!,,.;,:.\.,::.!..:.:,,,....,..;:...)..,,,,,..........;.!, .:.,,,.,.../ :...,.,.. .. 761 Decision and Order i.,.

I. ':Oo:" c.i ""G L" ,".. :. -:;r " "c:". =l =o;.;'''L .:; ;:,or ';'''=-':: ,,:,"O. ,:".,: ,r ' .. r "'''::''''''\'''';:''''i''''':':''- ","C''' - o ;-::i= ;..c:; :"n, ".,, -'''0::;:'':' "=, ; "r- ::. "",:: ;orn:. :. y"" are 'UC:G"' .. .w.:.c,,' '" or "..:r. , ;i.., -=.c or b .. f.-" .r u""r"" L G,"':' 'c" ;0:"''' 'J "- ":".::;0;' .. "0 t... i,. .h... ;". .... :., cj ,- .i; or :...co; o. "':.: i.:-..';..""u. II c ?'O?- "'I'" ' tC. u=.i.:: iL-:,.. 0' !.." .0: :"":1 to.:.. ."J: Of:" CO.. 1.. i""". "';0':'- :.- ."" If :.'L: .1 .. I.'" i"o ,;c . "i ;. .:. ". .:y u r. or '- u..... 'C... i"Q,-'''' cc " :. '0,,::. ., .e"''': c" o """I 'cO: , y ;:HI l:""" L :..: ... :. '-J.f "'." ...'u "'u""", '';'-cr "" c:,.""...:. :': .,c: .:c "=f;j' , W-.'- ;u"o=,:,., .I"".. -r....... ,c' iwd:.y I.;.; c'.", ,"U, 0-. .. .."., u bi ':::1 .;;.0 ..: 0.': ;; JO. ,,,:::0;, ..ic, ..y ..c. .,,:,, "rol )cr';:,."" .r d..-=.. "" .h "'" L. ..;. :. '0' .f e:, par".. b.,.... or;, o. c;''' ?"'..:. -= o. .e,?,":'.. b, "I.", 'he;. '""".o,i.. l""""..:.co' c.rc. ;,.o...,,..

1. Yo,..:.. u' \1 . ....,.., 1i.I. /.ooy.I' .. ..., c::'''o.."":,.,,:! I c" or o:: ro. i. to.. r.i:. . .::,e,"1 ,.. 0.. t- i'.:i rol y"" ,:.: wo!. ! , .'0,"'::"; ,- , ',!r-"j ',.'e: ':r -';:: u";,,. 0' o..=Cli ' o. C ,-. !"' D. p:.:L 4. L"oJ"". Gee. . L ';'af' ': b.". JO~ ,. .r..ci .. _0 .. ",:..I. I. ""= .., .::"' ":""'''0'' ::.--.. c i.""",,, ..,c..- ... I.' ce:.. ,."::. ,..!IC.. , ","oJ .. "",;O" =..1 "i""".::= , d h "'" '0"::' . c, ",-=c, :r i,;:"" or 'c, ":0.. I 0' .,'. . c. ,.;) ='0," . ..:'." ;:""'0'" ::.t"_ '" "'. c::=:i .. --"'"' ""."c:" to,,"" :o:"':"'" ::"J .""" \0 .. -" 01,=7 "'".. :;.'.r ,"",'"'' "';:"L:--- ,",eoco:. yo 0:.. :...,. ..c.' LO""' ,l' ::'0' ; CO?",,"'., '''\010 :'. ::I:" :Ll..,:. ,- c., .... 01 "," .r, . !'r. ""''' I,:""". ::"," 0' ''' CC. or :.".,:., C'?""' .;, ., .1 c' .:;",.;:, ,;;, c:,,,::, ., !.: "' r 1...or 0=' ",,""-=c;;, :0,-...:, r, !" 10 ::'00 \.",,;:. "0' I- ." ,. 'a .I;c. , c'Q", nt"c.a i '-" "'- ''''''-=10' p":,omi ;0 ,or:,.."i.u-., '" 0' .oo.,-r.o: H""".'"

CI 1o:! '0: .. po .. .:. P" ,. ''",: 10!-r J !. io -rC:". ao .. -, i"' O' ",,::.. . n- :n' "'"Leo:"; c. !... ':ope''', ;;" . L:-"C," oi .". "O';"' ;iO,d ior '0 ,,, i':'n'.. n, ';''''f''. . J" .-""ole.. ,. ,. c' o :or. oc ,. ". L o. rr; i ,"'.'"'' """., ",, ,a :=""J u ...c, .:-0 , fI"".1 L', C'- J '. w: ,.... :;"'co" ... =. :, w .;:o. i:o.;, , L o;:.- "0 . co"..." c,,, '-:." ,, L'. :0:= -:0' Ii, (;, I.. 0"';;;' ,oue, or 'c: ,. "?-o. :'"c.,,!. J'r. "' ;'0;;"" c. "-., I. .co.; ,, ,. "=, ce:-, 0"-"':",, :::::.. .:.:::::. ._;.?: .!...:...!_:_._. .. !,,. ;;....;,j :.:_. , _.. :.. .! ::.; . :: .,: ;;;.;,: ..:..;....,. .: ..:: ,.::,,; :.;;::::. ;:..,..::_;: ::.::... ,,...:!. :,.:..: .: : ::::...;::... ::::.:., ::.:.....:;::\:.::, ;.. :,.._:,.. / .:;.. , , Decision and Order 95 F.

;. II "U b.ij.. r... t- "......,,;. ..--,, '0 . .=-, """"",,: .:. Ii" o."' C-" . 0.:' '- ..:o=. ;'"""' '"

Z:. ;'Z-' =2- 0' L:w:, o... '...."u:. ' 0"" -.L; . Q"", Z-=:, -L'; E;o.:' v. I! !" !"" 0",,, .",:1"" o. .,,"'...;. ."",..! P'o ... :,,,:. L"" : , :"",:t, ;0."- Tn -=:; lb. ";;;11 10 oC,,, 1"0pe"7 =.,j .,.=ie..1i . . y"..c::.;:, ::,"' oa- . cu ....c.. 10. ILhyu.t.=-.. l8w, ..u,l... ;"..cM."' "'U.C:::":": ""U 19.2 oL ::... P'"I""" :"0 )..;. h..ue. 1- Y."'!"" "'.. ..,;. c.:-..". 1: .... =o=rr, ;t.!l ".!' ;. o::-".v t e:1 !:e.! e::Ir":"' Ir=. leis == :Irs, . c::,:s It. ."=I!::'lrl. s f.ll :e ::e1t v V'U t.o t. e C:::'::It=-:."'o 11-:1:: ";'l 25. 19& 2.

II. ... ""0" !..\r...... , O! U"-"',:',,,,!. .....-. L .I!",, ,. ;. ."'.'''ue. .. = c'. :.-, ..:! hui .1 Il,,.. t'urdllQ..1!"' -;t=':I1= 1':. ..l. P::7'" . r -"" 0..

t. :;:)' 'i:: '-::Y:" L.::-. ::::'I: &C' I: V ce ?=e'.:

cc: .;f. "1.= c.:,; :::2 t, P=Ir' n. i,,,;r-.. uu,.wi..;;:", "'n o"" . c"'f" ,..." i. I . ;nc'" =t "". ,.,:: 'a:T:''' r:.n; f- /5'- 1'7l' i:c,::_ o:""", O:''' ;;.-;.

ATTLSi, a.'.,..:",c,-=..""r o... i-;..

c=..

,:..::.:.::, : .::.,,,:. ,,:::.:;::: : ::::.. ::.::: :(:;:(.: ..::::,..:: ::::) ,: ,,::::.::,), !:,..:: :.:..:::!;:.!:::.::!: : :,,::;;).:.;, . ::. .. . LL & tlUWELL GU., Jit AL. 791 761 Decision and Order CONTI;,ENTAL BANK ! ,q:C"l !..... l. \7 ::'' V:: : '1' 0; 1. .: d: J !:!11 , C:.:- E,::::-:

At ;:, :.:J :'IC:'J . i'.== .3:::' C: .J .. ::;5. C';"'=-::":l. =.:::a.::5 :.:0.. : ?:.:I:.1 I::5C:: :.r: r:: :!.. ;:.;i.:., e ::''''''1;- :-i.C:-:..;:c::t:

': o::: c ';:, c,:.d, o C.otl t" ;: a: - ,L: C: e.l-'=::::.I" ,I:. = 3 , Ceo c u"" I:::; . c;: '" .C '-.5 lI:' , CSO o .d" ..0:: c'J a:;:, ,1=':.,. 0: (" Tr--6"" O c: G :'.1 tt: ,;:J =-::c. c = r ::cr?==-c ;:.:::.,,:r:l :I: .:::.; I:: :: :1!::::;; I :." c =: lie:: ;.:::: :: c rCj:::, .'.:J..,"=: C=I::"."

it .':c ,,::: I ! '. . .;:J . o:: :' ; 1 , C C" ;"e.;" He:: !:. 2 :'.::c 0 v,:: ' oea A.;:: ::c::: u,,:' S , :nL:.. c-:o: ':e=:J:

::= I:::.u'. c:1.:O:U 5;.CO;' ?:C;:1:c:. --d: '-:.-. T r;.:Je: :.1;:"::1: : C'H-":::. c.:.:,-: lcc::;:':;'L:H--CCH:: :"1. "'::i :::.5 ,c= bee::d n,,:.n: ::.:::: s c:c ?o:" :I?:::::: t:::."..t dd to !Jol .::s c,, ::-5 ;0= 1C';9 (;cH i' c1l.d ,"?a:;2:_tj) (.::.:::= ::::':c:-ee::=;,; IJJ :..c. :; i\::=;

;:;:;:: ..:::,,; : .:::.:. _:: ,,:;:::::::;(;:; :::: .:::: .:; ;: : : :,. ;:: :: ,:):::::::: :::: ,::_,: ::::::; :::: . . Decision and Order 95 F.

:.:-c -' c.

: 0:':-.

=- s c: 5 '' -= 2 Acc''' :.::::;:l :;-- C:C z :! :c I c-:::;; - CG2:: c .: ch,,:;-;; S2.5 ?2:

c e:: s: C e: C:':Ct2': cc:-2c i:,?l:- to E::.-; C 5 c:n::.:-..:; Ii" :; e:::;!': i:: .:=. :-. C::;" , 2:'C "':"- 5' ::(,C: :0 :e s:J;---:lc .:cj;; l:! .:l C =-::.e5 , c: :.: C: s I-Z' 1","-'5 c",::;.::e 0: c:: b-,s:. :l", S C :::-C. c:: : 0: ,,l S:::L:' ::f:- c.:-.= 'c.- C: ' . e::"-?r.c::.: cs":-='i'= , ?,,:::::.::;, t;;; ::;0;:' ::.:- : ;o:'. CL::- 'J:- CC: :':c !ises ' "il=- i! .:'::: ::e::. :- e 2-:- e c-:C:':-:::: :::. 2- E': ..:-_ .: .:;. : :...,,::,, ,.. ::,., , ,,..;,:.::.,:...:, ._.,,::..:::,.:,.,.:::::_.. ,,:::.:.:::..;:.,::::.:,,,:..;,......_p_. : .::,: ,._,.. ,,:;..,,:;.:;... ..::.::.::,..,,..,...:.:::..., ., . : . , BELL & HOWELL CO., ET AL.

761 Decision and Order CC:, !TI; :=t';-T L ::.

0-' - " : :. : 0- C(!:

:: 0 i 'c.C i' 0' \":.

c,- = :. 0 '3.

. 0 . c: ;. ;'C'--' . :C :':c: = '=0_ '7:

"I .. c, :c. ., 0: :-.

::c. '0: .",. O. ": ,:0. 0 ., :: .:r-::

. '0 , :";",o:e.\ 0 :. 0-"::' 324-971 O-Bl- 5! QU 794 FEDERAL TP.ADE COMMISSION DECISIONS Complaint 95 F.