FTC Proposed Business Opportunity Rule
Resources and Analysis
In April 2006, the Federal Trade Commission issued a proposed rule that will have the effect of extending the FTC Business Opportunity Rule to virtually all MLM programs. Despite rumors to the contrary, "nothing" will happen immediately. The process for adoption of a final rule is estimated by industry experts to take about 18 months to three years following extensive hearings, workshops and the political process. There will be plenty of time for debate and suggested modification of the Proposed Rule during that time. Most importantly, it should be noted that this is not the specific problem of any one company, but rather, it is a potential challenge to the entire community of all direct selling companies.
Ongoing updates on the status: