In the Matter of Joseph Jayko Trading
Federal Trade Commission
55 F.T.C. 242 (1958)
- Written by Jennifer Flinn, JD
Facts
Joseph Jayko operated the Cramwell Institute, located in Massachusetts, at which Jayko sold and graded exams that he claimed would measure an individual’s knowledge in a certain subject. Upon passing the exam, the Cramwell Institute awarded the individual an equivalency diploma. Cramwell Institute offered no educational instruction. According to Jayko, this equivalency diploma indicated that the individual had the knowledge and intelligence of an individual who had completed a college degree. The Cramwell Institute advertised this to individuals and made statements promising the diploma would lead to an increase in pay or promotion. The Federal Trade Commission (FTC) filed an administrative complaint against Jayko, alleging Jayko had violated the Federal Trade Commission Act by making false representations to consumers about the diplomas. The FTC hearing examiner ruled that Jayko had made false and deceptive statements, including his use of the word “institute,” regarding his diplomas, and issued a cease-and-desist order to Cramwell Institute. Jayko filed a motion with the FTC to set aside the hearing examiner’s order.
Rule of Law
Issue
Holding and Reasoning ()
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