The Federal Trade Commission, FTC is holding hearings on new proposed rules and regulations to protect consumers from Business Opportunity Fraud. These rules will include most Multi-Level Marketing Companies and Online Business Opportunity Deals. This new proposed set of rules will also separate the Franchise Rule and the Business Opportunity Models from each other under the law. Here is an excerpt of some of the prohibited events to be in the new proposed law and Business Opportunity sellers will wish to know about this and perhaps comment on this proposed rules; if this is of concern to them; The proposed Rule would prohibit common deceptive business opportunity sales practices. Among other things, business opportunity sellers would be prohibited from misrepresenting: (1) earnings; (2) costs or the efficacy, nature, or central characteristics of the business opportunity or the goods or services sold to the purchaser as part of the business opportunity; (3) cancellation or refund policies; (4) promised assistance; (5) the calculation and distribution of commissions, bonuses, incentives, premiums, or other payments from the seller; (6) the likelihood of finding locations for equipment or accounts for services; (7) a business opportunity as an offer of employment; (8) territorial exclusivity or more limited territorial protections; (9) endorsements; and (10) shills as references. Finally, the proposed Rule would prohibit business opportunity sellers from failing to make promised refunds, as well as assigning to any purchaser a purported exclusive territory that, in fact, encompasses the same or overlapping areas already assigned to another purchaser. The Federal Trade Commission is addressing all the massive data, complaints, comments collected to make the rules fair for the Biz Op Industry and the still keep the consumer safe. If you are a business opportunity specialist or seller, you need to get a copy of the proposed rules and comment on them if you feel it is appropriate. Consider all this in 2006. |
