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It also discusses how certain FTC rules and guides that use terms like "writing" or "printed" apply to Internet activities and how technologies such as email may be used to comply with certain rules and guides.The Internet provides unprecedented opportunities for the collection and sharing of information from and about consumers.Sellers are responsible for claims they make about their products and services.Third parties - such as advertising agencies or website designers and catalog marketers - also may be liable for making or disseminating deceptive representations if they participate in the preparation or distribution of the advertising, or know about the deceptive claims.Pyramid schemes are illegal in most states because the plans inevitably collapse when no new distributors can be recruited.When a plan collapses, most people - except those at the top of the pyramid - lose their money.

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In interpreting Section 5 of the Act, the Commission has determined that a representation, omission or practice is The FTC Act prohibits unfair or deceptive advertising in any medium.

For copies of the rules and commentaries relevant to your Internet enterprise, contact: Consumer Response Center, Federal Trade Commission, Washington, DC 20580; toll-free: 1-877-FTC-HELP (382-4357); TDD: 1-866-653-4261. The Franchise and Business Opportunity Rule requires franchise and business opportunity sellers to give consumers a detailed disclosure document at least 10 days before the consumer pays any money or legally commits to a purchase.

The document must include: In addition, companies that make earnings representations must give consumers the written basis for their claims, including the number and percentage of owners who have done at least as well as claimed. MLM - also known as "network" or "matrix" marketing - is a way of selling goods and services through distributors.

In June 1998, the FTC issued Online Privacy: A Report to Congress.

The Report noted that while over 85 percent of all websites collected personal information from consumers, only 14 percent of the sites in the FTC's random sample of commercial websites provided any notice to consumers of the personal information they collect or how they use it.