The Federal Trade Commission has added new rules to the Business Opportunity Rule to help protect the consumers before they purchase into any opportunities. Disclosures are required from the business opportunity sellers to all prospective buyers. The new rules should be simplified for the sellers who provide necessary information and should be easier for the buyers to assess risks.
The following changes are set to be effective on March 1. This information must be disclosed to all business opportunity buyers.
- More information about who they are, including the seller’s name, business location and phone number.
- Supporting information for any earnings claims, including the number and percentage of people who hit that mark.
- Whether legal actions alleging fraud or mis-representation have been brought against the seller, its affiliates or “key personnel”
- More detailed information about cancellation and refund policies.
- Names and contact information for references who participated within the past three years.
Piranha is proud not to be a part of Business Opportunity companies. We strive to develop and supply quality vending machine products without having to go into any grey areas in sales.