The Warrior Forum’s Warrior Special Offers Forum (WSO) could be significantly impacted by the new BizOpp rule from the Federal Trade Commission which is to come into effect from the 1st March, 2013.
The Business Opportunity Rule Revision-FTC
The Federal Trade Commission’s new rule in relation to Business Opportunities impose significant new obligations on sellers of “BizOpps”, that is business opportunities.
It comes into law on March 1st, 2013 and the main obligations placed on vendors are as follows:
If a commercial arrangement involves a seller persuading a buyer to enter into a new business, a business opportunity, and makes certain claims then those claims had better be accurate, at a minimum.
One Page Disclosure Document
The seller is now obliged to give the prospective purchaser a one page document called a disclosure document. And this has to be provided seven days prior to purchase of the business opportunity or system.
This disclosure document must be signed by the purchases and returned to the seller.
And the disclosure document must contain identifying information about the seller, the legal status of the vendor and whether he/she/it has been the subject of civil/criminal actions in the past, a refund or cancellation policy, whether he/she/it is making earnings claims, and references (at least 10 people who have bought the product in the past).
And if less than 10 people have bought the business opportunity then everyone who has bought it must be named.
To make matters even worse for the vendors of WSOs statements made orally or by email must be consistent with what is claimed in the disclosure statement.
Earnings Claim Statement
The seller must also be truthful in his advertising if he is making income claims and he must now do this by way of an earnings claim statement.
And all claims made about the success of the opportunity must be supported by evidence which must be made available to the purchaser and/or the FTC.
Now consider for a moment how Alexa Smith and Paul Uhl could possibly comply with this requirement when neither of them have even supplied fake or made up supporting materials for their claims to date..
The earnings claim statement must specify the claims, the name of the person making the claim, the start and end date of the earnings achieved, information about the buyers who allegedly achieved these results, and a written statement telling the buyer that they can have a written statement of proof of earnings.
Do you see any problems here for vendors of Warrior Forum WSO’s?
Truth in Advertising
The vendor’s advertising must be truthful.
All claims, oral and written, must be truthful and supported by evidence. The truth in advertising obligation even goes so far as to outlaw misleading people by the information that is left out.
So your statement could be literally true but if the context is not made clear and the omission of information could be misleading, then the vendor will be in breach of this new law.
The Federal Trade Commission then gives you a toll free number to call to report any breaches or to file a complaint with the FTC (www.ftc.gov )
If you are ripped off by a Warrior Special Offer don’t hesitate to visit the Federal Trade Commission website above and file a complaint.
A good web copywriting service will be a necessity for vendors from now on lest they fall foul of the FTC in relation to truth in advertising and/or complaints from purchasers.
Warrior Forum WSO
How the Warrior Forum WSO section can continue to operate under this new law remains to be seen.
No doubt the usual bunch of scammers will ignore the law completely or else pretend that what they are doing is providing information and not business opportunities.
One thing is certain: it will be interesting to see some of the thread titles on the WSO section from March 1st 2013.
Here are the contact details for reporting this crap:
Where to Complain
If you have spent money and time on a work-at-home program and now believe the program may not be legitimate, contact the company and ask for a refund. Let company representatives know that you plan to notify law enforcement officials about your experience. If you can’t resolve the dispute with the company, file a complaint with these organizations:
- The Federal Trade Commission at ftc.gov/complaint or 1-877-FTC-HELP (1-877-382-4357).
- The Attorney General’s office in your state or the state where the company is located. Visit naag.org; the office will be able to tell you whether you’re protected by any state law that may regulate work-at-home programs.
- Your local consumer protection offices.
- Your local Better Business Bureau at bbb.org.
- Your local postmaster. The U.S. Postal Service investigates fraudulent mail practices. Visit postalinspectors.uspis.gov.
- The advertising manager of the publication that ran the ad. The manager may be interested to learn about the problems you’ve had with the company.
Hopefully the days of this type of bullshit will be at an end…