While this seems like a good idea, it may be difficult to prove whether a student lacks awareness that a college lacks accreditation. I propose this rewriting of Section 3.
Section 3. Ban on misrepresentation of diploma authenticity or value
A person or group who is guilty of the following shall be guilty of fraud: "Any individual or group which distributes diplomas, and areand is not accredited or in the process of accreditation, without the student knowing that the diploma comes from a university that is not accredited or recognized as an institution of higher learning.having made a good-faith effort to inform its students that the diplomas do not come from an accredited higher learning institution."