Due to the massive number of complaints on fraudulent business practices from unscroupolous and less than ethical Business Opportunity (Biz Op) sellers the Federal Trade Commission (FTC) have proposed additional rules on this business model. Does this mean all Business Opportunity Sellers or Specialists are bad? Absolutely not, in fact there are over 100,000 folks making money quite legitimately using this venue. But the FTC is worried about the challenge of enforcing all this in the future. In their official proposed rule making changes report they outline some of the problems in reality based terms below; "Sellers of fraudulent work-at-home opportunities deceive their victims with promises of an ongoing relationship in which the seller will buy the output that opportunity purchasers produce. These sellers often misrepresent that there is a market for a purchaser's goods and services, just as sellers of fraudulent vending machine and rack display opportunities falsely claim that profitable vending locations are available. Work-at-home opportunity sellers also often claim to provide ongoing training and other assistance, as business opportunity sellers covered by the Franchise Rule often do. Each of these promises by work-at-home opportunity sellers is often just as illusory as the analogous promises made by business opportunity sellers covered by the Franchise Rule. In addition, fraudulent work-at-home opportunity sellers frequently invent undisclosed conditions and limitations for rejecting the work performed by purchasers and refusing to buy back the goods the purchasers produce. Similarly, these sellers' promises of continuing support and assistance frequently prove empty, leaving work-at-home opportunity purchasers with no help in figuring out how to assemble misshapen components into finished products." As you can very well see this is a serious issue with Home Based and Work-at-Home Business Opportunities. There is some problematic deception, misrepresentation and fraud out there and the FTC wants to protect the consumers. If you are a Biz Op seller and an honest one then these proposed FTC Rules may actually be a blessing as it will set your legitimate business apart from those who are less than ethical. You may even wish to take this opportunity to make comments in this proposed rule making changes to have your say. I hope you will all consider this in 2006. |
