By: SSN Staff
On Jan. 31, The Direct Selling Association (DSA) filed public comments on the Federal Trade Commission’s Advanced Notice of Proposed Rulemaking (ANPR) on the Business Opportunity Rule (BOR). The ANPR was released in November 2022, at which time the Commission asked the public to comment on the broadening of the rule and also on the effectiveness of the current BOR.
Established in 2012, the BOR sets guidelines for those selling a business opportunity to ensure that potential buyers receive the information required to make an informed decision. The rule prohibits sellers from making deceptive claims about the opportunity and mandates key disclosures to be provided via a disclosure document, including identifying information about the seller, information and substantiation of the seller’s earnings claims, documentation of any legal actions against the seller, the cancellation and refund policy, and a list of purchasers from the previous three years.
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