Fraud Org's Tips - Any Good?
The National Consumer's League for Internet FraudWatch has a checklist for detecting Business Opportunity Fraud, Tips for Business Opportunities. How good are these tips?
Well, several of the tips needs to be improved.
- Get information in writing before you decide. The Federal Trade Commission's (FTC) Franchise Rule requires franchise and business opportunity sellers to give you detailed written information, called the "disclosure document," at least 10 days before you pay any money or agree to purchase. There are some exceptions. If the company claims to be exempt from the Rule, call the FTC toll-free at 877-382-4357 to check.
This won't work at all. You need to get the disclosure document long before you even contact the business opportunity seller. Since the FTC is doesn't require the business opportunity seller to register its disclosure document with the FTC, phoning them to ask about either the disclosure document, or a legal ruling. Calling any regulatory authority will never get you much more than polite conversation.
2. Get everything in writing. The contract you are asked to sign should include all the terms of the deal and the promises that were made.
This is just worthless advice. Business opportunity sellers who are frauds will give you any written contract you want - they simply have no intention of honouring their promises.
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