The Federal Trade Commission is exploring changes to the Business Opportunity Rule, seeking comment from the public on the rule’s effectiveness and a potential expansion to the rule to cover other types of money-making opportunities, such as coaching or mentoring programs, e-commerce opportunities, or investment opportunities.“The Commission is prepared to use every tool to ensure that companies can’t prey on consumers with false money-making opportunities,” said Samuel Levine, Director of the Bureau of Consumer Protection. “One key tool is our Business Opportunity Rule, and we want to hear from the public on how we can improve it.”
The FTC is inviting the public to comment not only on the potential expansion of the rule, but also on the effectiveness of the existing rule, including whether it should be retained or eliminated, as well as other changes that should be made to the rule.
The FTC’s Business Opportunity Rule was first adopted in 2012, making it easier for people to get the information they need when they are thinking about investing in a business opportunity.
The Business Opportunity Rule prohibits those selling a business opportunity from making deceptive statements, and it requires them to make a number of key disclosures to potential buyers, including:
The seller’s identifying information.
Whether t …