Results of Scholarscam 2000 Released

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Results of Scholarscam 2000 Internet surf released:

Staff of the Federal Trade Commission today announced the results of a "surf" of Internet sites that advertise college scholarship services. Called "Scholarscam 2000," the surf provided a snapshot of scholarship services advertising on the World Wide Web and allowed the Commission staff to identify sites that may not currently be in compliance with the FTC Act, which prohibits deceptive practices in or affecting commerce.

As in two previous scholarship sweeps conducted in 1996 and 1997 (both of which led to formal complaints against several companies), FTC staff found that many of the Web sites promoting college scholarship services claimed they could guarantee either a certain number of scholarships or a specified level of financial aid for those signing up. FTC staff identified 37 Web sites as having suspect claims and sent those sites a warning letter advising that they reexamine and/or modify their promotional language. The organizations sponsoring the sites also were alerted that any online misrepresentation could lead to legal action in the future.

Copies of the documents mentioned in this FYI are available from the FTC's web site at http://www.ftc.gov and also from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Ave., N.W., Washington, D.C. 20580; 877-FTC Help (877-382-4357); TDD for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710.

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