Regulation & law
Business Opportunity Rule
An FTC rule requiring disclosures when selling certain business opportunities; most MLMs are exempt.
The FTC's Business Opportunity Rule requires sellers of covered business opportunities to give a one-page disclosure document, including any earnings claims with substantiation. Most multi-level marketing companies fall outside the rule's definition, which is one reason there is no standard income disclosure format in the United States.
The FTC has periodically considered whether to extend the rule to MLMs.