No More Using Industry Statistics to Sell Business Opportunities

In the past many business opportunity sellers would use industry specific statistics on their Web sites, brochures and even in videos, which they would mail to potential buyers. The Federal Trade Commission looked into this and found that many business opportunity sellers overused these figures to sell their wares.

In the future this tactic of using industry statistics may become illegal and considered fraudulent due to a proposed rule that the Federal Trade Commission is considering which would govern business opportunities. In the rule business opportunity sellers would have to prove and have records to prove that the statistics they use are actual statistics of people who bought their particular business opportunity.

Why is such a rule being considered by the Federal Trade Commission? Well, because there has been fraud in the past uniform of unsubstantiated earnings claims, which has damaged consumers. Below is an excerpt from the rulemaking section report by the Federal Trade Commission on their potential proposed rule;

Proposed section 437.4(c): Industry statistics