Business Opportunity Disclosure Laws
From the FTC.gov website. Just a measure in place to protect consumers. Make sure you use them when someone is trying to sign you up with an opprotunity.
Twenty-six states have business opportunity laws. Most of these laws prohibit sales of business opportunities unless the seller gives potential purchasers a pre-sale disclosure document that has first been filed with a designated state agency.
State business opportunity laws typically cover every imaginable type of business opportunity that might be offered. If a business opportunity seller is not required to provide pre-sale disclosures by the Franchise Rule, these disclosures will almost always be required by the laws of the states listed below.
The disclosures required by state business opportunity laws differ, and usually provide more abbreviated information than the FTC’s Franchise and Business Opportunity Rule requires. However, most of these laws provide important rights and remedies for business opportunity investors, including required security bonds to cover investor losses.
If you are considering purchasing a work-at-home or other business opportunity, and reside in a state with a business opportunity law, we encourage you to find out more about the protection provided by your state statute before you invest.
The states that have these laws are Alaska, California, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Marryland, Minnesota, Nebraska, New Hampshire, North Carolina, Ohio, Oklahoma, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, Wisconsin.
Detailed contact infomation can be found for each state at the FTC.gov website. Make sure and report people that cant provide you with the information required by law.
To use this tool effectively may take some extra work on the part of the person thinking of joining an opportunity. Especially if you are dealing by phone as you have no idea if the person trying to sell you is operating in a state with the disclosure laws. There is one person that sells an opportunity that frequents this site that list a cell phone number on their site from a completely different state from where they truly reside. They actually do reside in a state with a disclosure law, but carry a cell phone from a state that doesn’t. Just one more thing to be vigilant of.
thanks for the nice article in disclosure laws