Ethics
Biz Ops and Business Opportunities Must Substantiate Earnings Claims
The Federal Trade Commission is considering a new proposed rule, which would require Biz Op's and business opportunities to substantiate earnings claims that they may to potential buyers if the buyer requests them. Such earnings claims proof will hopefully eliminate much of the fraud that goes on in the business opportunity sector.
Below is a copy of the Federal Trade Commission's proposed rule on substantiate earnings claims to potential buyers to ask for them;
Proposed section 437.5(f): Written substantiation for earnings claims
?Proposed section 437.5(f) would prohibit a seller who makes an earnings claim from failing to provide written substantiation to prospective purchasers and to the Commission upon request. Rather than mandating that business opportunity sellers include documentation for earnings claims ? which could be voluminous ? in the earnings claim statement itself, section 437.5(f) would reduce compliance costs by requiring only that such materials be provided to potential purchasers and to the Commission upon request. Purchasers could then review the documentation if they so choose.?
Most business opportunity practitioners are indeed honest, however many simply make up huge numbers that the buyer may potentially make if they buy the business opportunity. For instance; ?Make $10,000 per month stuffing envelopes part-time in your own home, while working in your underwear and watching TV.? You may think this sounds funny and indeed it is, however now the business opportunity practitioners would have to come up with names and proof that people were actually making that kind of money after they had bought their business opportunity. Consider this in 2006.
Lance Winslow
Lance Winslow
Tags: Biz Ops, Business Opportunities, Must Substantiate, Earnings ClaimsSimilar articles
32 Words That Can Change Your Life
We all have ways of testing opportunities that enter our lives. Some of us just dive right in based on feeling, others walk straight into what they know is right by a gut feeling or intuition. Read more →Always Do the Right Thing
How often do you find yourself in the situation where you're asking yourself: * Why am I doing this? * Why did I agree to this? * I'm not getting paid for this, so why should I bother going ? Read more →Business Ethics Case Study Considered; Franchise Regulations
Many people believe that when they buy a franchise that the franchise business model has been reviewed by the government, yet this is not the case. In fact, franchising companies are only required to register their franchises with some, but not all states that they choose to franchise in. Read more →Business Ethics: The Law of Corporate Karma
According to the shamanic traditions, the great mystery of being is that all things are alive and have a level of intelligence. This is because all things are a part of the Great Spirit. Read more →Aphorism
The intuitive mind is a sacred gift, and the rational mind is a faithful servant. We have created a society that honors the servant and has forgotten the gift.
Albert Einstein