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Future Business Opportunity Disclosure Requirement Rule ChangesTip! Great Compensation Plan -- At the end of the day, the honest intention of anyone joining a MLM business opportunity is to be able to earn money. The products can be great and will be an added bonus in enticing people to join and stay on as pure consumers. If you or a business opportunities seller you may wish to know that there will be some new disclosure rules and new requirements in the near future. In fact the Federal Trade Commission is now discussing a set of proposed rule changes, which would level the playing field for franchisers and business opportunities. Additionally it appears by the Federal Trade Commission's recent report on these proposed rule changes that they wish to protect the consumer, weed out the unethical practitioners in the business opportunities sector and help those of the highest ethical standards in the business opportunities sector become more successful. Why do I assume this you ask?
Well, having previously been the founder of a franchising company, I always found it odd that there were so many unscrupulous business opportunities sellers to compete with. And it was obvious to me that it was quite unfair to have to follow all the rules while other people broke the law. If you are one of the many ethical business opportunities sellers you know how frustrating that can be. Below is the Federal Trade Commission's proposed rules and obligations to furnish written disclosure documents to business opportunity buyers; Proposed section 437.2: The Obligation to Furnish Written Documents "Proposed section 437.2 would set forth the Rule's basic disclosure obligation. It would specify that it is a violation of the Rule and Section 5 of the FTC Act for a seller to fail to furnish a prospective business opportunity purchaser with a complete and accurate basic disclosure document containing particular items of material information (section 437.3(a)) and, where applicable, an earnings claim statement (section 437.4(a)). The provision requires that these disclosures must be provided to prospective purchasers "at least seven calendar days before the earlier of the time that the prospective purchaser: (1) signs any contract in connection with the business opportunity sale; or (2) makes a payment or provides other consideration to the seller, directly or indirectly through a third party." These two requirements are discussed immediately below." It is good to know that the Federal Trade Commission is now concerned with both eliminating fraud and helping the consumer while rewarding ethical practitioners by removing the unscrupulous businesspeople in the business opportunities sector. Consider all this in 2006. Tip! Great Products -- Although MLM business opportunities promise great wealth for members who market the opportunity successfully, they are still essentially businesses and should provide a tangible product. A great product is one aspect of a MLM business opportunity that cannot be overlooked. Lance Winslow
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