FTC Checklist
Some years ago the FTC produced an excellent little checklist screening business opportunities. Unfortunately it is no longer on their front page.
Here it is:
* Use classified ads that urge the prospect to call an "800" number.
* Make wild and unsubstantiated claims about potential earnings. Include claims about "proven" concepts.
* Suggest that no experience is necessary.
* Promise exclusive territories.
* Rely on high-pressure telemarketing sales techniques to pressure a victim into turning over his or her money.
* Make assurances about good locations for vending machines or display racks, or the assistance of a professional locator.
* Hype references handpicked by the company (instead of providing a list of all current business opportunity owners in the region).
* Fail to provide prospective investors with a complete disclosure document containing pre-sale disclosures about their experience, lawsuit history, audited financial statements, and substantiation for any representations made about earnings.
