What’s Covered in the Business Opportunity Rule?

What’s Covered in the Business Opportunity Rule?

The Business Opportunity Rule applies to commercial arrangements where a seller solicits a prospective buyer to enter into a new business, the prospective purchaser makes a required payment, and the seller – expressly or by implication – makes certain kinds of claims. Examples of what's covered by the Rule include work-at-home opportunities like envelope stuffing or craft assembly where the seller offers to buy back merchandise from the bizopp buyer. Also covered: opportunities where a seller says it will help the buyer set up or run the business – for example, by providing the buyer with customers, accounts, or locations to sell products or services. Consult the Rule to find out if the opportunity you're selling is within the definition.

 

Stay Ahead of the Curve! Explore our comprehensive CLIClaw Business Opportunity Marketing Compliance Library for in-depth resources and insights.

 

For more information, see here:  https://www.ftc.gov/tips-advice/business-center/guidance/selling-work-home-or-other-business-opportunity-revised-rule

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https://www.ftc.gov/legal-library/browse/rules/business-opportunity-rule

 

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