| Comment Number: | 522418-02080 |
| Received: | 6/14/2006 7:43:41 AM |
| Organization: | |
| Commenter: | Nunn |
| State: | Not in the US |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Hello Myself and my family depend wholly on income from multilevel marketing programs, network marketing companies, or 'business opporutnities' based in the United States. I am a member of many well established and ethical business opportunities, none of which I have a bad word for. The proposals in the New Business Opportunity Rule (R511993) will place a strangle hold on legitimate network marketing companies, and will do very little to deter scammers who rarely take part in these opportunities anyway. Scammers will always find a way, exactly as spam continues to arrive in your mail box even though you have anitspam software. In the mean time, legitimate companies will suffer and many will not be able to continue to operate under the strain of increased paper work, delays in contacting new prospective distributors, and distributor fallout due to the huge amount of paperwork they themselves would have to deal with. This proposed 'business opportunity rule' (R511993) will make many people's lives a misery. Personally, myself and my family risk bankcruptcy, and with small children to raise, I dread the future if this rule is passed. People who join 'business opportunities', mulitlevel marketing opportunities, or network marketing companies have the freedom and the opportunity to make a success of themselves and make more money. Most people who complain about the industry do so because they haven't put the effort forth to become a success and therefore assume the opportunities are scams. This is where the FTC's complaints come from, but it is far from the truth and is largely down to the error of the individuals who join these programs expecting 'quick riches'. Here are the following problems in the bill: 1. The required disclosure and earnings statements and the required list of all distributors who have cancelled their distributorship in the previous last two years may cause the sponsoring process to become cumbersome and difficult. 2. These requirements may create unnecessary alarm and concern about the legitimacy of the profession and your business opportunity to prospective distributors. 3. The proposed seven day waiting period between receiving the disclosures and enrollment would likely cause a potential distributor to lose their enthusiasm for joining your company 4. The costs of complying with the requirements would increase expenses to the company which may be passed on through the selling price of goods or services we offer. Please rethink the business opportunity rule (R511993) as it is not viable for legitimate network marketing businesses to operate under these proposed changes. Thank you, Mr P M Nunn