MyPPE Vending, LLC. is providing you with a full Business Opportunity Disclosure Statement required by federal law. As well, in many states we are also required to provide you with additional state mandated disclosures.
The Business Opportunity Rule Explained
The Business Opportunity Rule applies to commercial arrangements where a seller solicits a prospective buyer to enter into a new business, the prospective purchaser makes a required payment, and the seller – expressly or by implication – makes certain kinds of claims.
Examples of what’s covered by the Rule include work-at-home opportunities like envelope stuffing or craft assembly where the seller offers to buy back merchandise from the bizopp buyer. Also covered: opportunities where a seller says it will help the buyer set up or run the business – for example, by providing the buyer with customers, accounts, or locations to sell products or services.
If a transaction falls within the Rule, a seller has three key legal responsibilities:
- They have to give the buyer a one-page Disclosure Document. And provide this document seven days before the prospective buyer signs a contract or pays any money for the business opportunity.
- If they make an earnings claim, they have to give the prospective buyer a separate document that says across the top EARNINGS CLAIM STATEMENT REQUIRED BY LAW.
- They have to comply with general truth-in-advertising principles, including avoiding deceptive practices. The Rule spells out a list of some “dos” and “don’ts.”