Before the

Federal Trade Commission

Washington, D.C.

In re Business Opportunity Rule ANPR, Project

No. R511993
Business Opportunity Rule
Docket No. FTC-2022-0072

COMMENTS OF
THE COMPUTER & COMMUNICATIONS INDUSTRY ASSOCIATION (CCIA)

In response to the Advanced Notice of Proposed Rulemaking (“ANPR”) and Request for

Public Comment published by the Federal Trade Commission (“FTC” or “the Commission”) in

the Federal Register at 87 Fed. Reg. 72428 (Nov. 25, 2022), the Computer & Communications

Industry Association (“CCIA”)1 submits the following comments on the Business Opportunity

Rule.

The Business Opportunity Rule should not be expanded to expressly cover e-commerce

opportunities. E-commerce opportunities are covered under the existing rule by considering the

same requirements as any other business opportunities. The current requirements of providing

locations for devices paid for by the purchaser, providing customers for the purchaser’s products,

or buying back any or all of the purchaser’s products should continue to apply to e-commerce

opportunities, just as they do for business opportunities in other areas, without the need for

expanding the Business Opportunity Rule.

When the FTC proscribes particular conduct, it need not proscribe two versions of every

type of rule: e.g., an unfair business practice, and that unfair business practice online. Rather

1
CCIA is an international, not-for-profit trade association representing a broad cross section of communications
and technology firms. For more than 50 years, CCIA has promoted open markets, open systems, and open
networks. CCIA members employ more than 1.6 million workers, invest more than $100 billion in research and
development, and contribute trillions of dollars in productivity to the global economy. A list of CCIA members is
available at https://www.ccianet.org/about/members.

1
than an express online/offline distinction, there should be flexible, technology-neutral rules that

can adapt to changes in technology. The Commission should avoid creating a negative

implication that commerce does not already include “e-commerce.” Virtually all electronic

commerce is just commerce. Brick-and-mortar businesses increasingly accept payment online

and offline via credit cards, apps, and mobile payments enabled by digital and contactless

payment technology.2

The ANPR notes that the FTC has brought cases under Section 5 of the FTC Act, 15

U.S.C. § 45, against e-commerce opportunities. 87 Fed. Reg. 72429. Additionally, law

enforcement is already able to successfully bring actions in appropriate cases against

perpetrators, with a sentence in a fraudulent “Business Opportunity Scheme” earlier this month.3

While there are bad actors engaging in fraudulent commercial activity online, existing law and

regulations are sufficient. A broad expansion of the Business Opportunity Rule to expressly

cover e-commerce opportunities risks creating confusion and harming legitimate small

businesses and consumers buying and selling products and services online.

Respectfully submitted,

Ali Sternburg
Vice President, Information Policy
Computer & Communications Industry Association (CCIA)
25 Massachusetts Avenue NW, Suite 300C
Washington, DC 20001
asternburg@ccianet.org

January 24, 2023

2
Susan Caminiti, Digital payments soared during the pandemic and are here to stay, CNBC (Aug. 17 2021),
https://www.cnbc.com/2021/08/17/digital-payments-soared-during-the-pandemic-and-are-here-to-stay.html.
3
Press Release, Dep’t of Justice, U.S. Attorney’s Office, S.D.N.Y., Reality Show Cast Member Jennifer Shah
Sentenced To 78 Months In Prison For Running Nationwide Telemarketing Fraud Scheme (Jan. 6, 2023),
https://www.justice.gov/usao-sdny/pr/reality-show-cast-member-jennifer-shah-sentenced-78-months-prison-
running-nationwide; Press Release, Dep’t of Justice, U.S. Attorney’s Office, S.D.N.Y., Reality Show Cast Members
Charged With Running Nationwide Telemarketing Fraud Scheme (Mar. 30, 2021), https://www.justice.gov/usao-
sdny/pr/reality-show-cast-members-charged-running-nationwide-telemarketing-fraud-scheme.