
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC3696]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
           CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS
 
                 SUBCHAPTER II--MISCELLANEOUS PROVISIONS
 
Sec. 3696. Limitation on certain advertising, sales, and 
        enrollment practices
        
    (a) The Secretary shall not approve the enrollment of an eligible 
veteran or eligible person in any course offered by an institution which 
utilizes advertising, sales, or enrollment practices of any type which 
are erroneous, deceptive, or misleading either by actual statement, 
omission, or intimation.
    (b) To ensure compliance with this section, any institution offering 
courses approved for the enrollment of eligible persons or veterans 
shall maintain a complete record of all advertising, sales, or 
enrollment materials (and copies thereof) utilized by or on behalf of 
the institution during the preceding 12-month period. Such record shall 
be available for inspection by the State approving agency or the 
Secretary. Such materials shall include but are not limited to any 
direct mail pieces, brochures, printed literature used by sales persons, 
films, video tapes, and audio tapes disseminated through broadcast 
media, material disseminated through print media, tear sheets, leaflets, 
handbills, fliers, and any sales or recruitment manuals used to instruct 
sales personnel, agents, or representatives of such institution.
    (c) The Secretary shall, pursuant to section 3694 of this title, 
enter into an agreement with the Federal Trade Commission to utilize, 
where appropriate, its services and facilities, consistent with its 
available resources, in carrying out investigations and making the 
Secretary's determinations under subsection (a) of this section. Such 
agreement shall provide that cases arising under subsection (a) of this 
section or any similar matters with respect to any of the requirements 
of this chapter or chapters 34 and 35 of this title shall be referred to 
the Federal Trade Commission which in its discretion will conduct an 
investigation and make preliminary findings. The findings and results of 
any such investigations shall be referred to the Secretary who shall 
take appropriate action in such cases within ninety days after such 
referral.

(Added Pub. L. 93-508, title II, Sec. 212(a), Dec. 3, 1974, 88 Stat. 
1585, Sec. 1796; amended Pub. L. 94-502, title V, Secs. 512, 513(a)(22), 
Oct. 15, 1976, 90 Stat. 2402, 2403; Pub. L. 98-543, title IV, Sec. 401, 
Oct. 24, 1984, 98 Stat. 2749; Pub. L. 101-237, title IV, 
Sec. 423(b)(1)(A), (2), Dec. 18, 1989, 103 Stat. 2092; renumbered 
Sec. 3696 and amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 
105 Stat. 406.)


                               Amendments

    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 1796 of this 
title as this section.
    Subsec. (c). Pub. L. 102-83, Sec. 5(c)(1), substituted ``3694'' for 
``1794''.
    1989--Pub. L. 101-237 substituted ``Secretary'' for 
``Administrator'' wherever appearing and ``Secretary's'' for 
``Administrator's'' in subsec. (c).
    1984--Subsec. (d). Pub. L. 98-543 struck out subsec. (d) which 
provided that not later than 60 days after the end of each fiscal year 
the Administrator would be required to report to Congress regarding the 
disposition of cases under this section.
    1976--Subsec. (b). Pub. L. 94-502, Sec. 512, added subsec. (b) and 
redesignated former subsec. (b) as (c).
    Subsec. (c). Pub. L. 94-502, Secs. 512(1), 513(a)(22), redesignated 
former subsec. (b) as (c) and substituted ``making the Administrator's 
determinations'' for ``making his determinations''. Former subsec. (c) 
redesignated (d).
    Subsec. (d). Pub. L. 94-502, Sec. 512(1), redesignated former 
subsec. (c) as (d).


                    Effective Date of 1976 Amendment

    Amendment by sections 512 and 513(a)(22) of Pub. L. 94-502 effective 
Dec. 1, 1976, and Oct. 15, 1976, respectively, see section 703(b), (c) 
of Pub. L. 94-502, set out as an Effective Date note under section 3693 
of this title.


                             Effective Date

    Section effective Dec. 3, 1974, see section 503 of Pub. L. 93-508, 
set out as an Effective Date of 1974 Amendment note under section 3452 
of this title.
