| Comment Number: | 522418-00482 |
| Received: | 6/2/2006 9:13:10 AM |
| Organization: | Independent Xango Distributor |
| Commenter: | Tanya & Dennis Rhea |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Dear Sir or Madam: I am writing this letter because I am concerned about the proposed Business Opportunity Rule R511993. I believe that in its present form, it could prevent me from continuing as a Xango Consultant Distributor. I understand that part of the FTC’s responsibilities is to protect the public from “unfair and deceptive acts or practices,” but some of the sections in the proposed rule will make it very difficult if not impossible for me to sell Xango products. Why do you want to stop law abiding people from doing a home business? One of the most confusing and burdensome sections of the proposed rule is the seven day waiting period to enroll new XANGO DISTRIBUTORS, ETC.]. XANGO sales kit only costs $35. People buy TVs, cars, and other items that cost much more than that and they do not have to wait seven-days. This waiting period gives the impression that there might be something wrong with the plan. It is hard enough getting people to join and to start making money and this rule will kill my company that I have put month into making. I also think this seven-day waiting period is unnecessary, because Xango already has a 90% buyback policy for all products including sales kits purchased by a salesperson within the last twelve months. Under this waiting period requirement, I will need to keep very detailed records when I first speak to someone about Xango and will then have to send in many reports to Xango headquarters. The proposed rule also calls for the release of any information regarding lawsuits involving misrepresentation, or unfair or deceptive practices. It does not matter if the company was found innocent. Today, anyone or any company can be sued for almost anything. It does not make sense to me that I would have to disclose these lawsuits Xango is found guilty. Otherwise, Xango and I are put at an unfair advantage even though Xango has done nothing wrong. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. I am glad to provide references, but in this day of identity theft, I am very uncomfortable giving out the personal information of individuals (without their approval) to strangers. Also, giving away this information could damage the business relationship of the references who may be involved in other companies or businesses including those of competitors. In order to get the list of the 10 prior purchasers, I will need to send the address of the prospective purchaser to Xango headquarters and then wait for the list. I also think the following sentence required by the proposed rule will prevent many people from wanting to sign up as a salesperson “If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers.” People are very concerned about their privacy and identity theft. They will be reluctant to share their personal information with individuals they may have never met and do not want to meet. My question to you is: Would you want your identity and personnel information to be given out to other without your consent and or knowledge? I have been a different product for years. I have been selling Xango and using Xango to help my health for about a year now. Originally, I started using Xango products because I like them and wanted to earn some additional money. Now my family depends on this extra income to supplement our budget, because of taxes and the government is taxing us more and more to give to the illegals, we need this income. I appreciate the work of the FTC to protect consumers, but I believe this proposed new rule has many unintended consequences and that there are less burdensome alternatives available in achieving its goals. I think you could spend your time better going after companies that hire illegals and are bring all type of diseases to this country and taking jobs from Ameircans. Thank you for your time in considering my comments. Sincerely, Tanya and Dennis Rhea