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e-Disclosure After the FTC Rule Amendments

Whatever qualms there may have been about e-disclosure should, with the release of the FTC's amended Franchise Rule, be resolved. Let the record be clear: The Federal Trade Commission ('FTC') has removed all doubt with respect to e-disclosure ' it is now officially sanctioned. Whatever concern there may have been, at this stage, is a matter of history.

In its Statement of Basis and Purpose, published with the newly amended Franchise Rule, the FTC spoke plainly on the topic:

[T]he final amended Rule also promotes efficiency and reduces compliance costs by enabling franchisors to use their own judgment in deciding how to disseminate disclosure documents. For example, part 436 permits franchisors to furnish disclosures electronically through a variety of media, including CD-ROM, Internet website, and email.

(FTC Statement of Basis and Purpose, at 22 (Jan. 23, 2007). This document has not yet been published in the Federal Register, but it is available at www.ftc.gov/opa/2007/01/franchiserule.htm.)

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