Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Your Free Business Opportunity Resource Is Easy To Use
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Sales Success Inspiration - Hello my friends and welcome to another installment of The Special Sauce Series on Sales.

Sales Success Inspiration is the name of the game today.  We left off with the last post "

No Sales! The Leads Suck! After ten years in the industry I have heard this more than once. In fact, I hear this so often that a series of educational blog posts are needed to educate sellers on how to close more deals - period.

No sales! Now, first I preface this entire post with one thought...

She Means Business: Turn Your Ideas into Reality and Become a Wildly Successful Entrepreneur Is our Book-of-the-Month.

Carrie Green began her entrepreneurial life at the tender age of 20, starting a company that would go global in just a few years. She has turned her experience...

Sponsors

STARSCAPES®
Imagine making up to $500 to $1,800 a day! Call or click now see how you can get your business for FREE! (602) 679-0257
FundAbility
Need Funding? Need To Offer Financing To Close More Deals? We Have Access 7,000+ Credit Providers. Learn more now...
How Many Leads Does It Take To Close A Sale?
This Article is now live on our blog and I know could be very insightful for many. Read On
Top 7 Reasons to Consider a CMS
The internet loves obscure abbreviations. You can skip over most of them, but not CMS. What is CMS? read on...
Productivity Hacks — Our Top 50
Productivity Hacks will help you make more from less this 2016. Here at BusinessOpportunity.com we want to... Read On
The Ideal Length of Everything Online, Including Social Media Posts
When one of your busiest marketing channels limits you to 140 characters, you know that the internet sets its own rules.
How Many Leads Does It Take To Close A Sale?
This Featured Article is live on our blog and I know could be very insightful for connectivity and ROI.
It Takes a Hot Voicemail to Land a Warm Lead
If you're a successful entrepreneur who provides others like you the chance to follow in your footsteps... Read On
Business Franchise Opportunities Funding
The principle reason entrepreneurs put off starting their own business is lack of funding... Read On
Top 50 Home-Based Business Ideas
Home-Based Business ownership can be the most rewarding endeavor you will ever undertake. The new year... Read On
Low Cost Business Opportunities to Own
Are your right for a Low Cost Business Opportunities to Own? The desire to own your own business... Read On
The Top 10 Reasons to Buy a Business Opportunity or Franchise
Starting your own small business is part of the American Dream, right up there with owning your own home. Read On
Why Advertise Your Business Opportunity?
Over the years we have been fortunate enough to receive quite a few testimonials. In fact, ... read on
7 Keys to Leading Highly Effective Sales Conversations
Most people's sales conversations could be better. Not a little better, significantly better. Read On
 
Resource Center > Article
FTC Finalizes New Business Opportunity Rule
10 Jan 12 Posted by: Kathleen C Lanza
in Featured Articles
Share this Article:

As of March 1, 2012, business opportunity sellers will be required to comply with the Federal Trade Commission’s (FTC) new and finalized Business Opportunity Rule. The Final Rule now applies to previously excluded work-at-home business opportunities including envelope stuffing and craft assembly while maintaining its jurisdiction over those opportunities that were already covered by the interim rule, which has been in place for some time. It also includes opportunities where the seller promises to help the buyer to obtain customers, accounts or locations to sell its products or services.

According to the FTC, “The changes simplify the disclosures that business opportunity sellers must provide to prospective buyers” and help consumers to assess risk while “minimizing compliance burdens on businesses.” Central to the claim that the Final Rule lowers the compliance burden on business opportunity sellers is a new disclosure document, which takes the mandated seller-to-buyer exchange of information down from some 20 items to a single page.

The FTC stipulates that the new one-page document― entitled “Disclosure of Important Information about Business Opportunity”―be provided by a business opportunity seller to a prospective buyer at least seven days before any contract is signed or money is paid. Furthermore, it clearly states on the form that the prospective buyer should “Make sure that this information is the same as what the salesperson told you about this opportunity.” Finally, prospective buyers are instructed to sign and date the form and return it to the seller for his or her records.

More specifically, the new one-page document requires the business opportunity seller to disclose five key pieces of information:

1. Identifying/contact information, including name, address, phone number, salesperson and the date

2. Whether or not he/she or his/her key personnel have been the subject of any legal action within the past 10 years and, if so, a list of those actions must be provided

3. Whether or not there is a cancellation or refund policy and, if so, a clear description of said policy

4. A substantiated Earnings Claim Statement, if any potential earnings are stated or implied; and

5. References, along with a note indicating that, should a purchase be made, that buyer’s contact information will also be disclosed to other potential buyers in the future.

The FTC further requires business opportunity sellers to keep the Disclosure Document current and update it every quarter. And in those cases where English is not the primary language used in a potential business opportunity sale, the new rule mandates that the Document and all of its disclosures be in the alternative language as well.

(Click here to obtain a copy of the Disclosure Document.)

Given the Final Rule’s length of some 50 pages, the FTC is making a concerted effort to simplify it for business opportunity sellers as much as possible. Among its online resources aimed at making these new regulations more understandable is a video focusing on “The Business Opportunity Rule,” as well as a summary document entitled “Selling a Work-at-Home or Other Business Opportunity? Revised Rule May Apply to You.”

Any business opportunity seller who meets the definition set forth in the new final rule must meet three key legal responsibilities, all of which are the primary focus of the resources named above:

1. As already mentioned, maintaining a current Disclosure Document is critical

2. If sellers make an earnings claim, it has to be clearly substantiated in a separate document that is headlined with a banner reading “EARNINGS CLAIM STATEMENT REQUIRED BY LAW;” and

3. Sellers must avoid all deceptive practices and misleading claims. For instance, it is not simply ill advised, but in fact it is illegal for business opportunity sellers to say anything that contradicts what is in their Disclosure Document. Additionally, sellers cannot claim they are offering a prospect a job when they’re really promoting a business opportunity―and so forth and so on.

While comprehensive in its scope as it affects the business opportunity industry, the new rule does not apply to franchises in their most literal definition. In fact, many would assert that it actually puts even greater distance between the two―reinforcing the fact that franchises traditionally constitute much more involved arrangements, while the comparatively low-cost business opportunity now involves far less complexity.

The rule also does not apply to multi-level marketing (MLM) concerns. While the FTC does recognize that there are a number of problems inherent to the MLM industry, it has determined for the time being that the Business Opportunity Rule is not the best outlet for addressing them. Rather, it has pledged to continue to challenge unfair and deceptive practices in that industry through Section 5 of the FTC Act.

Lastly, business opportunity sellers should note that―as was the case with the original Business Opportunity Rule and the amended Franchise Rule of 2007―FTC rules do not take precedence over state law unless those laws conflict with the FTC rules. Put more simply, state law is not superseded by the current Rule if it affords prospective buyers equal or greater protection. That being the case, it’s every bit as important for business opportunity sellers to understand the state laws that affect them as much as or even more so than those at the federal level.

Related Blog Posts
15 Mar 17 Posted by: Kevin James Culp
in Featured Articles

Sales Success Inspiration - Hello my friends and welcome to another installment of The Special Sauce Series on Sales.

Sales Success Inspiration is the name of the game today.  We left off with the last post "
10 Mar 17 Posted by: Kevin James Culp
in Featured Articles

No Sales! The Leads Suck! After ten years in the industry I have heard this more than once. In fact, I hear this so often that a series of educational blog posts are needed to educate sellers on how to close more deals - period.

No sales! Now, first I preface this entire post with one thought...
1 Mar 17 Posted by: Kevin James Culp
in Featured Articles

She Means Business: Turn Your Ideas into Reality and Become a Wildly Successful Entrepreneur Is our Book-of-the-Month.

Carrie Green began her entrepreneurial life at the tender age of 20, starting a company that would go global in just a few years. She has turned her experience...
16 Feb 17 Posted by: Anuj Mishra
in Featured Articles

Improve Customer Engagement - The days of endless customer tickets are finally over, all thanks to the advancements in technology and innovations from clever software developers.

Improve Customer Engagement - Instead of being constantly overwhelmed by countless...

22 Nov 16 Posted by: Kevin James Culp
in Featured Articles

Free Lead Generation is a hot topic these days since many pay a pretty penny per portal to generate leads to increase ROI.

Free Lead Generation is part of any markets platform.  It is important to note that this November was 'nutty' for lack of a better word.  The purpose of this blog post...
 
   

SocialXpand Business Opportunity Interview w/ Brian Weiss was for me a new way to learn from a customer and whom I consider a friend in the industry.

I've had the opportunity to work for a while now with Brian Weiss who is the Director of Sales for the
Video Spotlight
You're invited to view a Bartercard Online Franchise Presentation.

Premium Sponsor