Direct Selling Association Files Comments on Federal Trade Commission Business Opportunity Rule Advanced Notice of Proposed Rulemaking

January 31, 2023

Today, DSA submitted comments to the Federal Trade Commission on the Advanced Notice of Proposed Rulemaking on the Business Opportunity Rule. The comments stated that the Commission should finalize its ongoing rulemaking regarding earnings claims before proceeding with updating the Business Opportunity Rule. The comments also stated the FTC should consider updates in consumer protection since the rule was last finalized in 2011 that did specifically not cover direct sellers—importantly, the establishment of the Direct Selling Self-Regulatory Council administered by the BBB National Programs.

 DSA President Joseph N. Mariano said, “Overlapping rulemakings are untenable for the millions of direct selling micro-entrepreneurs in the United States. Over a decade ago, when the FTC considered broadly sweeping direct sellers into the Business Opportunity Rule, over 17,000 direct sellers wrote the Commission and said the proposed rule would be bad for their small businesses. Those concerns remain the same over a decade later. The requirements under the current rule remain burdensome or superfluous with the rise of technology and the internet. In fact, direct sellers have instituted new industry- wide measures to provide even more confidence to customers and salespeople based on the suggestions of senior FTC officials. DSA looks forward to working constructively with the Commission if the rule does proceed but hope they will consider these factors before the scope of the rule is expanded to include direct sellers.”

 In addition to DSA’s comments letters were submitted by Members of the United States Senate and United States House of Representatives also requesting the FTC carefully consider expanding the scope of the rule as applied to direct sellers.

 DSA’s comments can be viewed here.

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You may contact Adolfo Franco, Executive Vice President.