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We have all the term business opportunity but you know what he business opportunity actually is? Most of us have also heard the term Biz Op and this of course is just a shortened version of the word business opportunity. The actual legal definition of “business opportunity” is set by the Federal Trade Commission or FTC. And that legal definition may actually be changing soon if the Federal Trade Commission has anything to say about; and they do.
The new proposed definition of the business opportunity as outlined in the Federal Trade Commission’s report on business opportunities and proposed rule changes is listed below;
Proposed section 437.1(d): “Business opportunity”
“This definition establishes the proposed Rule’s scope. The proposed definition of “business opportunity” is intended to capture the sale of true business opportunities without regulating the ordinary sale of goods and services to businesses. The three definitional elements of the term “business opportunity” are: (1) a solicitation to enter into a new business; (2) payment of consideration, directly or indirectly through a third party; and (3) either an earnings claim or an offer to provide business assistance. Each of these elements is discussed immediately below.”
You see, the Federal Trade Commission is revising the franchise rule, which also encompasses business opportunities. This new definition will help serve the purpose of defining what he business opportunity actually is and that will help business opportunity sellers know if they fit into that category or if they have to look for a new category such as a franchise to see if they fit into that definition.
What other reasons that the FTC is looking to uniquely defining business opportunities is so that they can monitor the law and stop on ethical practitioners who are ripping off consumers when they sell them scams instead of business opportunities. There are many great business opportunity practitioners who are very ethical in every regard; unfortunately there are also less than ethical practitioners, which harm consumers and operate in a fraudulent way. Consider this in 2006.