Current through September 24, 2024
(1)
All institutions and their administrative personnel, instructors, agents, and
other staff shall act in accordance with fair consumer practices. Fair consumer
practices means honesty, fairness, and disclosure to students in areas
including, but not limited to, class schedules, recruitment, admissions,
contractual agreements, student financial assistance, obligations to repay
student loans, placement assistance, job placement rates, advertising, refund
policies, the meaning and recognition of different types of accreditation, the
transferability of the institution's credits to other postsecondary
institutions, and competitors.
(a)
Institutions shall ensure that nothing is hidden and all verbal and written
representations by the institution are accurate.
(b) Fair consumer practices require an
institution to apply its policies as written. The student shall be subject to
the written policies in place at the time of the student's initial enrollment
into the applicable program. Any changes to the written policies that occur
during the student's period of enrollment shall only be applied to the student
if the student signs and dates a document acknowledging the new policy and
agreeing that said policy shall be applied to the student.
(c) As applicable, verbal and written
representations must reasonably allow enrolled or prospective students to make
informed decisions concerning their investment of time or money and provide
information needed to understand, evaluate, and comply with institution
policies and program requirements.
(2) Students have a reasonable expectation to
complete programs as printed in the institutional catalog at the time of
enrollment.
(3) Institutions may
not use mandatory arbitration provisions.
(4) Findings by Commission staff and/or
ongoing complaints by current or prospective students that show a pattern of
misinformation, misrepresentation, lack of disclosure, or discrepancies between
verbal and written information, intimidation, or coercion may require
corrective public announcements in addition to adverse action as set forth in
Rule .22 of these rules.
(5) An
institution must report to Commission staff in writing within thirty (30)
calendar days any unresolved written complaint filed in a Tennessee court about
the institution of which the institution is knowledgeable.
(6) Institutions may provide a discount for
cash payments provided:
(a) The institution
has a written policy in the catalog that includes the definition of cash and
details the qualifications for receiving and the amount of a cash discount;
and
(b) The student verifies
receipt and understanding of the policy in the pre-enrollment
checklist.
(7) An
institution may award a scholarship, tuition waiver, or other similar award
provided:
(a) The eligibility requirements
for the offering, including terms, conditions, application procedures, due
dates, basis for selection, and amount to be awarded, are clearly defined in
writing;
(b) The institution has a
form and procedure to verify eligibility; and
(c) The amount of the award is a flat dollar
amount or subject to calculation using a defined formula or scale.
(8) Any person claiming damage or
loss as a result of any act or practice by an authorized postsecondary
educational institution or its agent that is a violation of the Act or these
rules, may file a verified complaint on forms provided by the Commission. Any
student who files a complaint or on behalf of whom a complaint is filed must
first exhaust the grievance process at the institution. Parties to the
complaint shall be the complainant and any named institution or agent thereof.
The investigation and further review of written complaints will occur in
accordance with the following provisions:
(a)
Complaints shall be signed and submitted as provided for in Rule .24 of these
rules.
(b) Any complaint as
described in subparagraph (a) shall be commenced within three (3) years of the
subject student's withdrawal from or completion of the program or course of
enrollment.
(c) Any named
institution or agent will receive a copy of the complaint and be provided an
opportunity to respond to all allegations contained in the complaint.
(d) Any named institution or agent shall
provide all information requested by Commission staff as part of the
investigation.
(e) As part of the
investigation process, Commission staff may work with the complainant and the
named institution or agent to effectuate a resolution.
(f) When resolution is not reached and if,
based on all the evidence obtained through the investigation, Commission staff
finds that any person, agent, group, or entity is, is about to, or has been
violating the Act or these rules:
1.
Commission staff may recommend that the Executive Director take action as
provided for in T.C.A. §
49-7-2010 and §
49-7-2017 and these rules. Parties
to the complaint shall be provided an opportunity to show cause why such
recommendations should not be forwarded to the Executive Director. Such
opportunity shall detail the basis for the findings and provide any party ten
(10) business days to respond.
2.
The Executive Director shall act on a recommendation from Commission staff
after the time for the show cause response has expired by providing a Notice of
Decision to the parties to the complaint. Such notice shall explain the right
to a hearing and review by the Commission as provided in T.C.A. §
49-7-2012. Any request for review
shall be filed with the Commission within ten (10) business days of the date of
the Notice of Decision, otherwise the action of the Executive Director shall be
deemed final and no further review available. Any request for review shall be
in writing, signed, and provide a detailed explanation of each alleged error
with references to specific statutes or rules. A request may be denied if it is
not received in a timely manner.
(g) When resolution of the complaint is not
reached and if, based on all the evidence obtained through the investigation,
Commission staff makes no findings or determines that an adverse action
recommendation is not justified:
1.
Commission staff shall provide the parties to the complaint notice of the lack
of findings or determination.
2.
If, upon written notification of any action taken by Commission staff, an
aggrieved party to a complaint desires a review by the Executive Director, the
party shall notify the Executive Director within ten (10) business days of the
date of the action of Commission staff, otherwise the action of Commission
staff shall be deemed final and no further review available. Any request for
review by the Executive Director shall be in writing, signed, and provide a
detailed explanation of each alleged error with references to the Act or these
rules. A request may be denied if it is not received in a timely
manner.
3. If, upon written
notification of any action taken by the Executive Director, an aggrieved party
to the complaint desires a hearing and review by the Commission, pursuant to
T.C.A. §
49-7-2012, the party shall notify
the Commission within ten (10) business days of the date of the action of the
Executive Director, otherwise the action of the Executive Director shall be
deemed final and no further review available. Any request for review by the
Commission shall be in writing, signed, and provide a detailed explanation of
each alleged error with references to the Act or these rules. A request may be
denied if it is not received in a timely manner.
(h) Any party to the complaint aggrieved or
adversely affected by any final Commission action may obtain judicial review of
the action as provided in T.C.A. §
49-7-2012.
(i) A complaint investigation may be placed
on hold or closed if litigation or investigation involving similar issues is
on-going at any court or other government agency.
(9) Notwithstanding the provisions of
paragraph (8) of this rule, Commission staff may take appropriate action to
investigate any complaint or suspected non-compliance in order to protect the
public interest.
Authority: T.C.A. §§
49-7-2005,
49-7-2006,
49-7-2007,
49-7-2008,
49-7-2011, and
49-7-2013 and 2022 Tenn. Pub. Ch.
No. 1044.
