FTC Adds New Protections for Consumers Seeking to Work from Home

The FTC has finalized a new rule to protect consumers with additional disclosure requirements for work-at-home programs/business opportunities. The new rule will be effective March 1, 2012. You can read more below. If you have any ABs in this category it might will be important they be able to meet the new requirements outlined by the FTC. 

The final Rule requires business opportunity sellers to give consumers specific information to help them evaluate a business opportunity. Sellers must disclose five key items of information in a simple, one-page document:

• the seller's identifying information;
• whether the seller makes a claim about the purchaser's likely earnings (and, if the seller checks the "yes" box, the seller must provide information supporting any such claims);
• whether the seller, its affiliates or key personnel have been involved in certain legal actions (and, if yes, a separate list of those actions);
• whether the seller has a cancellation or refund policy (and, if yes, a separate document stating the material terms of such policies); and
• a list of persons who bought the business opportunity within the previous three years.