What are the 3 Key Legal Responsibilities in the Business Opportunity Rule?

What are the 3 Key Legal Responsibilities in the Business Opportunity Rule?

What's required. If a transaction falls within the Rule, a seller has three key legal responsibilities:

1. You have to give the buyer a one-page Disclosure Document. And you have to provide this document seven days before the prospective buyer signs a contract or pays any money for the business opportunity.

2. If you make an earnings claim, you have to give the prospective buyer a separate document that says across the top EARNINGS CLAIM STATEMENT REQUIRED BY LAW.

3. You have to comply with general truth-in-advertising principles, including avoiding deceptive practices. The Rule spells out a list of some "dos" and "don'ts."

 

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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