Business Opportunity Regulation States
Before you buy into a business opportunity, find out if your state regulates them and how the laws can protect you.
August 26, 2002
Over a period of about 25 years, 24 states and the Federal Trade Commission (FTC) adopted laws that impose a variety of requirements on companies and individuals who sell packages that qualify as "business opportunities." Some statutes call the concept "seller-assisted marketing plans." The FTC adopted a set of business opportunity regulations as part of its 1979 Franchise Rule basically requiring full presale disclosure, but it included a definition of a business opportunity venture that was so loose it reached only a fraction of the companies covered by state laws.