Business Opportunity Rule

The Business Opportunity Rule is a regulation by the Federal Trade Commission that aims to protect individuals from deceptive and false claims made by little-known business opportunities or multi-level marketing plans. It requires companies to provide clear, upfront information—such as income potential, costs involved, and support offered—before someone invests. The rule also mandates disclosing any earnings claims, providing a brochure, and giving a three-day cancellation period. Overall, it helps potential entrepreneurs make informed decisions and prevents fraudulent or misleading practices in opportunity sales.