(4) Cancellation or Refund Policy. A disclosure of all terms of any refund or cancellation policy.

(5) Cancellation or Refund Requests. A disclosure of the total number of purchasers of the same type of business opportunity offered by the seller during the 2 years prior to the date of the business opportunity disclosure. A disclosure of the total number of oral and written cancellation requests during that same period for the sale of the same type of business opportunity.

(6) References. A disclosure of the name, addresses, and phone numbers of all purchasers of the business opportunity within the last three years. 11 there are more than 10, the disclosure may be limited to at least 10 within the past three years who are located nearest to the prospective purchaser's location. Alternatively, a list may be supplied showing all purchasers nationwide within the last three years. Until a seller has a total list of at least 10 purchasers, the seller must update the list monthly until 10 distributors are listed.

(7) Receipt. A duplicate copy of the disclosure page must be attached and signed and dated by the purchaser.

(8) Updates. All information on the form disclosed by the seller must be updated quarterly to reflect any changes and that update supplied to the purchaser monthly.

Record Retention

Every person who presents a business opportunity to another must retain signed and dated copies of the business opportunity forms given prospects; every update; every executed contact; every cancellation or refund request; and all substantiation relied upon for a period of three years.
 

Remember, this is still in the proposal stage, but should it pass, you might have to pay closer attention to how you conduct business.