August 24, 2006

Video - FTC Proposed Business Opportunity Rule...

Here's a clip regarding the FTC's proposed Business Opportunity Rule. And while the video itself seems kinda cheesy and scripted (in my opinion), it does hit upon some of the major issues that have been brought into question recently.

It highlights some of the concerns of professionals in well-known direct selling companies like Mary Kay, Country Bunny Bath & Body, Avon and even Tupperware. And it addresses crucial issues like privacy rights and due process.

The FTC Threat to Network Marketing

1 comment:

  1. Interesting clip Aaron, I just pulled some information from a 10-Q filed with the SEC recently regarding the FTC's proposed rule:

    We are also subject to the risk that new laws or regulations might be implemented or that current laws or regulations might change, which could require us to change or modify the way we conduct business in certain markets. The United States Federal Trade Commission released a proposed New Business Opportunity Rule on April 5, 2006. The proposed rule would require pre-sale disclosures for all business opportunities, which might include network marketing compensation plans. The New Business Opportunity Rule is currently only a proposed rule. If implemented at all, the rule ultimately may not be implemented in a form that applies to network marketing compensation plans, or may change significantly before it is implemented. If the proposed rule were adopted as currently proposed, it might require MLM Company to change some of its current practices regarding pre-sale disclosures.

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