If you sell a business course, run a coaching program, or market consulting services by mentioning how much your clients make - the Federal Trade Commission is proposing rules that would put you on the hook for paperwork you almost certainly don't have.
Two rule proposals, flagged by the Small Business & Entrepreneurship Council this month, are still active on the FTC's agenda. One would expand the existing Business Opportunity Rule to cover "money-making opportunities" - a broad category that includes business coaching, investment education, and online courses. The other targets multi-level marketing earnings claims specifically.
If finalized, both rules would require businesses to:
- Possess written substantiation for any earnings claim before making it
- Provide that documentation in the language the claim was made upon request
- Avoid "material misrepresentations" about potential income - with civil penalties of up to $53,088 per violation
The rules were originally proposed in January 2025. They haven't been voted on, but they're still in motion.
What Counts as an Earnings Claim?
Broader than you might think. The FTC's proposed language would cover:
- "My clients made $10,000 in their first 90 days"
- Testimonials featuring income results
- Screenshots of payment notifications
- Income ranges mentioned in sales copy
The FTC's argument: these claims are misleading unless the seller can prove they're typical - not best-case results cherry-picked from a handful of clients.
That's a high bar. Most coaches and course creators don't track client outcomes systematically. Most use their best-performing clients as social proof.
The Counter-Argument
Karen Kerrigan, president of the SBE Council, published an op-ed in Real Clear Policy arguing that the FTC already has the authority to go after genuinely deceptive operators under existing law - and that adding a new layer of documentation requirements would bury legitimate small businesses without stopping the bad actors who already ignore the rules.
She also pointed out that the proposals appear to conflict with President Trump's executive order on deregulation, which directed agencies to eliminate regulations that "impose undue burdens on small business."
That political tension is real, but it hasn't stopped the proposals from sitting on the FTC's docket.
Who Should Be Paying Attention Right Now
If you fall into any of these categories, this is worth watching:
- Business and life coaches who market with client success stories
- Online course creators in finance, real estate, or entrepreneurship
- Consultants who reference client revenue outcomes in their marketing
- Franchise and business opportunity sellers - already covered by existing rules, but the expansion broadens the net
None of this is finalized. But these proposals have been in the pipeline for 16 months, and the FTC has shown no indication of withdrawing them.
The practical move right now: If you make earnings claims in your marketing, talk to a marketing compliance attorney. Document the basis for the claims you use. Know the difference between "typical results" and "best case results" - and say so explicitly. The FTC's core objection isn't that people brag about results. It's that most sellers never tell the audience how rare those results actually are.
That's a reasonable standard. It's also one that would require real work for most small businesses in the advice economy.
Sources: FTC.gov press release, January 2025 - SBE Council, May 17, 2026 - Real Clear Policy Op-Ed