Changes Coming to Home Business Opportunity Disclosures

Before signing up for a home business “opportunity,” make sure you know what you are getting into.

There are a number of home business “opportunities” out there. Many of these home business opportunities, though, require you to purchase a system, or purchase products to sell, or go through some other rigamarole in order to be successful. In some cases, you might not actually know much about the actual process.

All of that is about to change. On March 1, 2012, the FTC is putting into practice changes to its Business Opportunity Rule. Golden Gate BBB reports on some of the disclosures that these work from home opportunities will have to make:

  • Identifying information about the seller. You should be able to find out who the seller is, as well as learn how to contact the company or person.
  • Documentation supporting claims about a purchaser’s likely earnings. So, claims that most people make a certain amount of money with a home business system have to backed up.
  • Whether the seller, affiliates, and/or key personnel have been involved in legal actions. This means that buyers have to be made aware of lawsuits and other legal actions against the system or company.
  • Cancellation or refund policy, and information about what, exactly, a purchaser needs in order to receive the benefit of this policy.
  • List of persons who bought the business opportunity during the last three years.

Indeed, this information is useful to have now. Before you purchase any home business system or opportunity, it is a good idea to carefully vet the opportunity. The FTC will be applying these rules even to craft-making and envelope-stuffing “opportunities.”

Look for Red Flags

Before you buy into any home business opportunity, it’s vital that you consider the possibility that the whole thing is little more than a scam. Even though some home business systems and opportunities may operate legally, this does not always mean they are the best use of your money.

Take a careful look at the promises being made, as well as the policies and requirements of different home business opportunities. You might think that it sounds like a solid investment, and the ticket to your freedom from the Rat Race, but you still need to be careful. A home business takes a lot of work; anything that promises easy riches should be suspect.

Written by Miranda Marquit

Miranda Marquit is a freelance writer and professional blogger, specializing in personal finance, small business, and investing topics. She writes for a number of financial web sites and blogs, and has been featured in numerous media. Read about life as a freelancer at MirandaMarquit.com and in her book Confessions of a Professional Blogger.

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