Disclosure Requirements Concerning Business Opportunities

Forms and Documents

Document Name	Status
Biz Opp Final Rule Suppl. SS final_mtd.pdf Supporting Statement A	2011-12-13

IC Document Collections

IC ID	Document Title	Status
200458	Costs of Bus. Opp. Sellers Mktg in non-English to Translate the Required Disclosures	New
200457	Costs to Draft Disclosure Document in a Language Other Than English or Spanish	New
200456	Business Opportunity Sellers' Printing and Mailing Costs	New
200455	Disclosures by Work-At-Home Business Opportunity Sellers	New
200453	Disclosures By Vending Machine, Rack Display, and Related Bus. Opportunity Sellers	New
200452	Recordkeeping for Business Opportunity Sellers	New
184892	Business Opportunity Sellers (Established Entities)	Removed
184891	Business Opportunity Sellers (New Entrants)	Removed

ICR Details

OMB Control No: 3084-0142	ICR Reference No: 201112-3084-013
Status: Historical Active	Previous ICR Reference No: 201112-3084-001
Agency/Subagency: FTC	Agency Tracking No:
Title: Disclosure Requirements Concerning Business Opportunities
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 02/02/2012
	Date Received in OIRA: 12/13/2011
Terms of Clearance: The approval for this information collection will go into effect March 1, 2012; with the current requirements still being in effect until Feb 29, 2012.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	02/28/2015	36 Months From Approved	03/31/2012
Responses	3,163,773	0	250,000
Time Burden (Hours)	10,533	0	16,750
Cost Burden (Dollars)	3,068,843	0	3,887,500

---

Abstract: The Federal Trade Commission is adopting final amendments to its Trade Regulation Rule entitled "Disclosure Requirements and Prohibitions Concerning Business Opportunities" ("Business Opportunity Rule"). Among other things, the Business Opportunity Rule has been amended to broaden its scope to cover business opportunity sellers not covered by the interim Business Opportunity Rule, such as sellers of work-at-home opportunities, and to streamline and simplify the disclosures that sellers must provide to prospective purchasers.

---

Authorizing Statute(s): US Code: 15 USC 41-58 Name of Law: Federal Trade Commission Act
  

Citations for New Statutory Requirements: None

---

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3084-AB04	Final or interim final rulemaking	76 FR 76816	12/08/2011

---

Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

---

Number of Information Collection (IC) in this ICR: 6

IC Title	Form No.	Form Name
Recordkeeping for Business Opportunity Sellers
Business Opportunity Sellers (Established Entities)
Disclosures by Work-At-Home Business Opportunity Sellers
Business Opportunity Sellers (New Entrants)
Disclosures By Vending Machine, Rack Display, and Related Bus. Opportunity Sellers
Costs of Bus. Opp. Sellers Mktg in non-English to Translate the Required Disclosures
Costs to Draft Disclosure Document in a Language Other Than English or Spanish
Business Opportunity Sellers' Printing and Mailing Costs

---

ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	3,163,773	250,000	0	-250,000	3,163,773	0
Annual Time Burden (Hours)	10,533	16,750	0	-16,750	10,533	0
Annual Cost Burden (Dollars)	3,068,843	3,887,500	0	-3,887,500	3,068,843	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Changing Regulations

Short Statement: The final rule amendments streamline the required disclosures (from over twenty to five) in the disclosure document that business opportunity sellers give to prospective buyers, permit business opportunity sellers to comply with the Rule using existing materials, and permit the use of electronic signatures and electronic recordkeeping. The amendments expand the Rule's coverage to encompass work-at-home opportunity sellers. The amendments add the requirement that sellers must provide the disclosure document and other required disclosures to potential purchasers in the same language the seller uses to market the business opportunity.

---

Annual Cost to Federal Government: $309,000

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

---

Common Form ICR:  No

---

On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 12/13/2011

---