Clicky’s Compliance Corner: FTC Business Opportunity Rule

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16 CFR Part 437 fka

FTC Business Opportunity Rule


The Federal Trade Commission (“FTC”) will begin enforcing the new Business Opportunity Rule (“Rule”) when the new law goes into effect on  March 1, 2012 . The new rule, 16 CFR Part 437, is intended to provide protocols for sellers of certain products classified as a Business Opportunity, as defined by the Rule.  Additional necessary compliance requirements under the rule are extensive and include: formalized disclosure requirements, records retention policies, substantiation of earnings claims, names and contact information of a minimum of ten consumer references, and a 7-day waiting period before a consumer can agree to a sale- in addition to dozens of other requirements outside the scope of this blog post.

Effective  February 29, 2012  – The Network will require all of its advertisers who are subject to the definition of the rule to complete the required disclosures in order to remain live.   Among affiliate marketing industry circles, the term “biz opp” is often used to refer to one of a myriad of different offers marketed by merchant advertisers to consumers, ranging from “Work from Home” to “Make Money Online.”

Clickbooth has always set the industry standard for compliant business practices, been proactive in its self regulation, and has always been willing to sacrifice profits in the interest of protecting advertisers, publishers, and consumers. We anticipate that other companies in our industry may not take this Rule as seriously as we are. If an advertiser or network is still running what looks to you like a “ biz opp” be sure to exercise extreme caution, you do not want to sacrifice the reputation of our industry and your livelihood for short term gains.

If you have any questions specific to your marketing practices be sure to seek advice from a trained legal expert.



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