FTC Bizopp law takes effect today

Discussion in 'In The News' started by emailjedi, Mar 1, 2012.

  1. emailjedi

    emailjedi VIP

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    Well guys, more than likely you know this already but the FTC BizOpp law takes effect today.

    Rather than copy and paste what it says, you can discover more here:

    http://www.krinternetlaw.com/intern...ortunity-rule-becomes-effective-march-1-2012/

    Whats interesting to me is that this seems to have some affiliate networks panicking without truly understanding the law. I would love to hear Airins take on that.

    But, instead of abandoning this market and running for the hills, I suggest you read this internet marketing lawyers dissection of the law and how it applies to anyone promoting as either a vendor or an affiliate:

    http://internetmarketinglawcenter.com/ftc-bizopprule.pdf
     
  2. jellyfish

    jellyfish VIP

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    It is my understanding that the majority of offers affiliates promote are not actual bizops but just general educational material.
     
  3. airin

    airin Member

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    This is brutal. While I agree something was needed, as too many people were out there with only intentions of ripping people off... I do think the FTC has taken things a bit too far. Having to disclose earnings statements and back them up with proof is fair, but having to disclose things like the number of purchasers that achieve that level or how the characteristics of the persons achieving that differ from that of the prospects. Seriously? Everyone knows that only a small number of people achieve the highest level of success. Also, if I am selling this online how the hell am I supposed to know what characteristics my prospect's have?

    I don't think it's going to kill bizopps or MLM, but I do think you see a lot of changes over the next few months. We have a few things in the works that should definitely get around the regulations.
     
  4. airin

    airin Member

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    Most will fall under this, as they provide access to info. This is NOT where the companies that we promote make their money. They are only essentially creating extra qualified buyer leads to sell into coaching programs that cost thousands or tens of thousands. There are plenty of call centers dedicated to doing nothing but selling these coaching programs.
     
  5. emailjedi

    emailjedi VIP

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    Yea - Provo, UT - home of the Boiler Room Call Center (think Glengarry Glen Ross on Super Steroids) is one of the places that brought the heat down on this in a big way.
     
  6. DKPMO

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  7. DoldGigga

    DoldGigga VIP

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    That's the summary of it from the website linked to by hans solo. I think it sounds worse than it is.

    - The first point isn't entirely unreasonable - it should cut down on scammers, of which there are plenty.

    - Also not unreasonable, although it's not clear what would constitute acceptable evidence. Perhaps a financial statement signed by a practicing CPA would suffice.

    - Standard fare, nothing new. Most sites already post ToS on their pages.

    - This one is a little odd and could even be a privacy issue, but could be remedied with a simple list of first name, last initial, city and state.

    In reality I think this thing is a blessing in disguise for bizopp sellers that actually have a solid system to promote. Each point here can be used to provide an additional layer of credibility as the offer can be presented as "FTC Approved". The customer list would bolster the site as being effective because if hundreds of people are buying it then "it must be working!", and a CPA-signed financial statement would be indisputable proof that yes, IT DOES MAKE $6,128 PER WEEK IF YOU ARE A SINGLE MOM!
     

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