| Comment Number: | 522418-02029 |
| Received: | 6/13/2006 4:14:33 PM |
| Organization: | |
| Commenter: | A Nadesan |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
The Honorable Cliff Stearns U.S. House Of Representatives Re: The FTC’s Business Opportunity Rule, R511993 (16 CFR Part 437) Dear Chairman Stearns, Please help HALT the FTC rulemaking Process that will drastically inhibit our precious domestic freedom to participate in direct selling opportunities! On April 12, 2006, The Federal Trade Commission published an Orwellian 42 page, NOTICE OF PROPOSED RULEMAKING, in the Federal Register. It is misleadingly entitled, The Business Opportunity Rule. It should be called the, Wet Blanket Rule. It is inadvertently or deliberately designed to dampen the enthusiasm of new prospects considering multilevel business opportunities. It will have a devastating impact on the entire direct selling industry. It will smother millions of good-faith Americans with EXCESSIVE AND NEEDLESS paperwork and records who are working hard to make a living as direct sellers or multilevel distributors. For about 25 years the FTC’s Franchise Rule covered only those opportunities that required a buyer to make a payment of at least $500 within the first six months of operation. The April 12 2006 proposed Rule completely eliminates this $500 exemption! PLEASE REINSTATE THIS EXEMPTION!!! In 1979, to justify the reasonable $500 exemption, the FTC wisely said: When the required investment to purchase a business opportunity is comparatively small, prospective purchasers face a relatively small financial risk. Respectfully Submitted, ____________________________________ A. Nadesan