A report by Federal Trade Commission (FTC) staff recommended that the FTC's Business Opportunity Rule be expanded to include more work-at-home business opportunities. The current rule applies to business with an initial investment of more than $500, but many work-at-home opportunities do not cost that much.
Betsy Lordan, a spokesperson in the FTC's Office of Public Affairs explains,"The proposed rule recommends including work-at-home opportunities such as envelope stuffing, medical billing, and product assembly, many of which have not been covered before. The proposed rule recommends streamlining the disclosures required by the Business Opportunity Rule so that companies or individuals selling business opportunities make important disclosures to consumers on a simple, easy-to-read document."
The recommendation is open for public comment until January 18, 2011. After the commissioners review the public comments, they will vote on whether to accept these changes.
The rules aim to make it easier for purchasers of business opportunities to understand the disclosures from the seller. But rules or no, anyone considering buying into a business opportunities needs to do their own due diligence. Don't sign anything you have doubts about. Read the FTC's advice regarding business opportunities. And check out these resources for spotting work at home scams: