| Comment Number: | 522418-02476 |
| Received: | 6/15/2006 10:41:59 PM |
| Organization: | XanGo |
| Commenter: | Joseph Wicker |
| State: | MO |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Ladies and Gentlemen of the FTC: I'm writing in response to the proposed Business Opportunity Rule, R511993. I wish to address two areas of concern with the proposed rule but first would like to express my appreciation to the FTC for their proactive consumer protection mission. I do understand that there are fraudulent groups operating under the multi-level marketing business model, however, I feel that this rule will impose unnecessary delays, cast a negative light on all direct selling business opportunities, create privacy and safety issues and unfairly harm legitimate businesses while the "bad apples" will continue to be "bad apples" and simply not provide accurate information. I have been in business for myself for a very short period of time; 15 months. I was introduced to this opportunity by my mother and father who saw great potential for their son who has little money but much determination to invest in his future. Since beginning a home-based business I have been able to spend more time with my family and have also become a more productive member of society in general. This opportunity has helped me to gain more personal confidence and provided me with the ability to genuinely help those around me who have great potential but little money. Direct selling has also provided me with wonderful mentors and teachers; people who really do care about my personal and financial development. These are people I would never have had the opportunity to work side-by-side with otherwise. The two areas of the proposed rule that I am most concerned with are the: Seven-day waiting period, and the ten local references. I'm concerned with the seven-day waiting period because most people will simply not take the time to review the documents in the first place and their emotional attachment to the idea of owning their own business will fade. People who are successful in direct selling are the same people who have drive and determination and also have vision and are sparked by opportunity. A seven-day waiting period will extinguish this spark. Legitimate businesses don't make a profit off of simply recruiting or sponsoring new distributors, they make a profit from the sale of products to these new distributors. Legitimate business builders in direct-sales companies, like the one I am involved with offer money-back guarantees on products purchased by new distributors and follow-through on those guarantees. The other provision and the one I am most concerned with is the one regarding the disclosure of ten of the nearest existing sales people. Many people are very concerned these days with privacy and do not feel comfortable giving out personal information regarding their physical locations and telephone numbers. Unscrupulous individuals from the very entities you hope to suppress with this rule will be able to pose as interested parties in order to garner the names, addresses and telephone numbers of ten people who they will use as leads for their own fraudulent opportunities. Many people who would otherwise get involved and build successful businesses from home will make the decision to not get involved only because they do not want to have their personal information made public. This one provision would be very devastating to all direct selling business opportunities, especially legitimate ones. Fraudulent businesses will continue to swindle new distributors and customers because they have no regard for the law. It’s like my grandfather used to say, “putting a lock on a door will only keep the honest people out”. Thank you for allowing me the opportunity to express my personal opinions and concerns. I have complete faith that you will come to a decision that is fair to all and will also boost the growth of legitimate home-based businesses. Best Regards, Joseph Wicker XanGo™ Independent Distributor