Comment Number: 522418-01620
Received: 6/9/2006 3:37:20 PM
Organization: Business Research Association
Commenter: M Miller
State: NV
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

Re: Business Opportunity Rule, R511993 We were informed that the F.T.C. is permitting the general public to offer their comments and feedback concerning the new proposed rules for Businesses that make “claims”—especially MLMs and similar ones. We understand that you are going to require that these companies file some type of DISCLOSURE with the F.T.C. We think that this is a good idea, but more importantly, we want to know what the CONSEQUENCES are for companies that are already frauding people and who may fail to provide such documents. We also think that some type of simple SUMMARY STATEMENT should be provided to the Consumer—even if only in summary form of what they provide to the F.T.C. Our group has research many of these “home-based businesses” --Internet E-Z-Money deals--- “ get rich quick plans” and MLMs. Some of these scam-artists have learned to “dress up” their offers--- put up fancy websites, mail out fancy materials about “contests”---and they use all kinds of tricks to solicit payments. There are some scam-artists who start a business, solicit high sign-up fees--- get rich on that---and then shut down. Then they start another business and do the same thing. So—perhaps it would be good to include something that shows how many different “Opportunities” each business has interest in—when they were started, shut down, etc. Some OPPORTUNITIES are good. And those that are—should be permitted to do business, without any ridiculous over-kill on paperwork production. And far too many are nothing but scams and rip-offs. WE STRONGLY SUGGEST THAT YOU include all business that make big claims about what they offer !! … We are wondering if these Rules would also apply to the major INSURANCE COMPANIES that continuously MAKE FRAUDULENT CLAIMS… put out FALSE ADVERTISIING… violate the rights of people. WHY ARE INSURANCE COMPANIES PERMITTED TO DEFRAUD SO MANY PEOPLE? FOR MORE INFO ABOUT THIS MAJOR CONSUMER PROBLEM… www.badfaithinsurance.org Many of them are charging outrageous fees – just to join—and not giving the consumer (distributor, member, rep)—much of anything. The company makes tons of money doing that alone. And if the Rep does not earn anything--- TOO BAD…so sad…the consumer loses. This Rule should not be limited to “MLMs”--- it should include ANY BUSINESS THAT MAKES CLAIMS to “offer financial rewards, income, compensation, etc.” We have the following suggestions: 1) FTC should require that any business that makes CLAIMS that people can “earn tons of money”--- “build assets”--- “earn big income”—and similar—that these companies make available to the customers said “SUPPORTING proofs” of these claims. 2) FTC should require some type of supporting evidence or explanation, disclaimer—(etc.) and that this document or statement BE PUBLISHED in the COMPANY LITERATURE or ON BROCHURES--- clearly explaining why a company charges any fees of an amount more than $200 for signing up, joining, or becoming a distributor. 3) ANY AND ALL CLAIMS MADE should be explained—whether it is “earnings” or for “company ownership”--- or for “fast bucks”--- or for “quick cure” ..ALL CLAIMS 4) FTC should require MLMs and similar groups that require people to recruit other, to build Downline structures--- to show supporting evidence that it can be reasonably accomplished and how much it will cost to do it. WE ALSO SUGGEST that to keep it SIMPLE for the average consumer--- that the companies be required to provide a WRITTEN STATEMENT of no more than 2 pages--- stating their CLAIMS or DISCLAIMERS. Above all—we want to know what the consequences are to these “opportunities that simply do not comply, that continue to “rip-off” people…and what can consumers do about it??? Sincerely, Dr. M. Miller BUSINESS RESEARCH ASSOC. P.O. Box 31043 Las Vegas, NV 89173-1043