Business Opportunity Rule self-check

Digital Products, Templates, and Freelance Writing | PublicProof Academy working document

Walks your offer through the three elements of 16 CFR 437.1(c) so you find out before launch whether your course has become a regulated business opportunity.

Business

State or jurisdiction

Prepared on

Owner

Official source saved

Next review

Element 1: are you soliciting someone into a new business?

My marketing invites the buyer to start a business, side hustle, agency, store or freelance practice
My marketing is aimed at people who do not currently do this work for money
My headline, ads or emails use words like start, launch, become a, build your own business

Element 2: is there a required payment?

The buyer must pay me (or anyone I designate) before they get the thing I am promising
There is a required purchase of tools, software, inventory or a membership to participate
A free tier exists that genuinely delivers what I promise without any payment (write what it is)

Element 3: do I represent that I or a designated person will provide locations, outlets, accounts, customers, or buy back output?

I say or imply I will provide clients, customers, accounts or leads, including internet customers
I say or imply a partner, agency, platform or 'our network' will place students with clients or brands
I offer done-for-you setup where I supply the customers or the accounts, not just the training
I offer to buy back, resell or pay for what the student produces
I use words like guaranteed clients, we place you, we get you customers, we hand you accounts, we buy your output
None of the above: I only teach, and the student must find their own customers (write the exact wording you use to make that clear)

If all three elements are checked, the Rule applies. Confirm you can do all of this

One-page disclosure document prepared in the Rule's required form
Disclosure given to every prospect at least seven calendar days before any payment or signing
List of prior purchasers prepared as the Rule requires
All legal actions disclosed
Cancellation or refund policy disclosed, or the required statement that there is none
Separate earnings claim statement prepared for every earnings claim, with substantiation held
Records of disclosures and substantiation retained
Disclosures provided in the same language in which I sell
I never state or imply that any law prevents me from giving earnings information
Reviewed with a lawyer before launch (date and name)

Decision

Conclusion: the Rule does NOT apply because element ___ is absent. Written reasoning saved on ___
Conclusion: the Rule DOES apply. Compliance package built and reviewed on ___
Conclusion: I will change the offer to remove the provide-customers promise. Changes made on ___
Re-check scheduled for (date), and after any change to the sales page, ads or upsells

Use rule: Education and organization only. Record the agency, official source, checked date, cost, proof saved and responsible person for every consequential requirement. Unknown means stop and confirm. Example rows are labeled EXAMPLE and are not your data.