FTC Released a Guide Ads for Business Opportunities: How to Detect Deception (December 2006)

Ads for Business Opportunities: How to Detect Deception

December 2006

The Federal Trade Commission (“FTC”) warns that many ads for business opportunities make false promises that can mislead potential entrepreneurs. These ads often appear in newspapers, magazines, and online, targeting individuals looking to become their own boss or make quick money. To safeguard your publication's reputation and protect your readers, it's essential to scrutinize these ads for signs of fraud.

One key indicator of potentially fraudulent claims is unrealistic promises. Phrases such as "Work Part-Time from Home" or "Be Your Own Boss" often misrepresent the reality of owning a small business. Additionally, if an ad states a specific income, it must provide details on how many previous buyers achieved that income; a lack of this information may indicate illegality.

Another red flag is the claim of guaranteed returns. Ads that proclaim "No risk! Guaranteed!" should be approached with caution, as legitimate business opportunities inherently involve risks. Furthermore, promises of quick success, such as instant earnings or easy start-ups, are usually misleading; successful businesses require significant effort and time to establish.

By identifying these deceptive claims, you can help protect both your company and your audience from scams. Taking a moment to review business opportunity ads can prevent reputational damage and financial loss for both advertisers and consumers.

For more information, see here:  https://www.ftc.gov/tips-advice/business-center/guidance/ads-business-opportunities-how-detect-deception

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