Sponsored by:
Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
Senator VIN GOPAL
District 11 (Monmouth)
SYNOPSIS
Requires online program manager providing marketing services for institution of higher education or proprietary institution licensed to offer academic degrees to self-identify as third party to prospective students.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning higher education marketing practices and supplementing Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. An institution of higher education or proprietary institution licensed to offer academic degrees that retains an online program manager to provide marketing services for its academic degree programs shall require that:
(1) the online program manager self-identifies as a third party entity that is separate from the institution at the beginning of any communication with a prospective student; and
(2) any digital or print advertising provided by the online program manager for an academic program of the institution includes a clear disclosure of the relationship between the online program manager and the institution.
b. A violation of the requirements of subsection a. of this section shall constitute an unlawful practice in violation of P.L.1960, c.39 (C.56:8-1 et seq.), and shall be subject to all remedies and penalties available pursuant to the provisions of that act.
c. As used in this section: “online program manager” means an entity that enters into a contract or agreement with an institution of higher education or proprietary institution licensed to offer academic degrees to provide one or more of the following services on behalf of the institution in exchange for financial compensation: advertising and marketing services; recruiting, admissions, and financial services; instruction services; student support services; technology resources and support services; and curriculum development services.
2. This act shall take effect on the 30th day after enactment.
STATEMENT
Institutions of higher education and proprietary schools are increasingly utilizing the marketing services of online program managers to promote their programs to prospective students. Under this bill, an institution of higher education or proprietary institution licensed to offer academic degrees that retains an online program manager to provide marketing services for its academic degree programs must require:
(1) the online program manager to self-identify as a third party entity that is separate from the institution at the beginning of any communication with a prospective student; and
(2) any digital or print advertising provided by the online program manager for an academic program of the institution to include a clear disclosure of the relationship between the online program manager and the institution.
The bill further provides that an online program manager’s failure to self-identify pursuant to the bill’s provisions constitutes an unlawful practice under the New Jersey consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), and remedies and penalties may be assessed according to the provisions of that act.