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This is a major reason why it is sometimes so hard to stick to any kind of schedule. I have just spent my entire morning and most of the afternoon spreading the word to just about everyone I know about this new, proposed Ruling by the FTC, The "New Business Opportunity Rule."
If it is passed (this Friday), this rule would effectively mean that all business opportunities (specifically MLMs and Party programs), would be forced to operate under the constraints of franchises.
They SAY they are proposing this as a way to prevent fraud, especially online. Yeah. Sure.
Only trouble is, the way it will WORK is that it will prevent 99% of all online business from functioning-- because all but the largest companies (oh, yeah, gee-- interesting co-incidence, isnt' it?) will have the resources needed to continue doing business since being a franchise requires that a business register with the government (plus pay fees for this), plus register anyone who joins under them as a "franchise" (i.e., currently affiliates).
Now, apart from the fact that, technically, I AM ALREADY registered with the government (in the way of tax information at each biz opp), this additional registration ($$) is going to place a burden on the already over-burdened online marketer. Of course, this is assuming they mean to go after every single online marketer. I doubt even the FTC is that ambitious.
But, even supposing they ONLY go after the companies themselves, further requirements of "waiting periods" and all kinds of "disclosure agreements" which will have to be shown to new sign-ups (including a complete list of any one who discontinued membership, as well as "references"), will do much more damage than good.
It will over-burden the honest business that is already trying to earn a living and, since scam runners will simply ignore it and continue to troll for newbies, it won't even slow them down! Oh, but it will give them something to laugh at...
Yeah. Let's see, I wonder who REALLY proposed this little gem... hmmm. I wonder.
All I know is that corporations have made a career out of squelching the small business man. And this is just another example, conveniently disguised as "preventing fraud."
Yeah, sure. . .
For more information on this topic, visit FTC Press Release
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