Regulations for Small Businesses
Small businesses need to follow many rules and regulations while starting the business. Although it seems that any person can just wake up one day and start a business but there are many regulatory requirements which are to be kept in consideration. A small business owner should be well aware of all the US regulations before starting up a business. If the business man is unaware of any law and acts in a way that the law is broken, he has to fulfill huge amount of fine or is forced to shut down. Let us discuss the marketing law and employment law applied by US regulatory body on the Small businesses.
Advertising & Marketing Law
Marketing is an important tool for every business. Businesses carry out marketing activities inorder to promote their business and to inform about their business to customers. But it is a legal responsibility of businesses to make sure that the promotional claims they make are truthful.
The regulatory body that deals with the laws is Federal Trade Commission (FTC). The laws inform business about the legal methods of conducting marketing campaign, telemarketing methods, health and environmental claims. Following are the details of the laws related to different aspects of marketing:
· The advertising claims should be truthful, deceptive claims can be questioned by the regulatory bodies.
· FTC has developed specific rules related to franchises, real estate, clothing manufacturers, and others
· FTC also has proper rules related to email marketing, if you as a small business are planning to carry out a email campaign, you should make sure you abide by the laws related to email spam.
Small business also needs to hire employees in their organization inorder to fulfill the business processes properly and efficiently. Hiring employees means that the business has to comply with employment and labor laws. These laws include instructions about prevention of discrimination and harassment, labor hours, minimum wage rate and compensation regulations.
The U.S. Department of Labor oversees federal employment and labor laws. While different states have their own unique set of specific laws.
