| Comment Number: | 522418-03143 |
| Received: | 6/17/2006 4:48:03 PM |
| Organization: | XanGo |
| Commenter: | James Greiner |
| State: | MI |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| Attachment: | 522418-03143.pdf Download Adobe Reader |
Comments:
My wife and I have had our own home business for just over three years, representing a wonderful health food supplement called XanGo. This product is sold by XanGo LLC of Lehi, UT. We got into this business as a result of a recommendation of a friend, who also got into the business just before we did. This business has allowed us to generate a large income, saving us from financial catastrophe. My wife, who had been retired, has taken charge of the daily work and changed from someone who watched TV and shopped each day into an invigorated, excited leader. Out of 500,000 people representing XanGo, she is considered the top person in Michigan. It has changed her life -- and changed mine too, due to the wonderful income and much better health. In fact, it has changed the lives of many in Michigan, which is otherwise experiencing a recession. Michigan is the #3 state in sales of XanGo, behind only California and Texas. XanGo has been an economic boon to many. XanGo LLC has apprised us of your new business opportunity rules changes. Of course, we are well aware of the positive affects that FTC has had in favor of consumer protection. On the other hand, it will be unfortunate if the small minority of unscrupulous MLM scams cause you to draft rules that make it virtually impossible for the good ones to continue. The five rules that are proposed may help to reduce this unscrupulous behavior, but the affects on our business will be terrible. In our business, where many of the new distributors need our product to improve their health immediately, a seven day waiting period penalizes not just the sales people but the consumer even more. XanGo requests only a $35 fee to join and this just isn't a burdensome risk. The company has a 30-day return guarantee, so initial product purchases have no risk whatsoever. Our business is also very personal. You would require our company HQ to provide lists of other customers without regard to their desire to be referrals or the privacy of our MLM organization. As a matter of course, we normally provide as many names as an individual requests (which is often very few). Prospective members can also attend local meetings to meet current buyers. My "organization" contains 15,000 people. We believe that fradulent lists are likely to be submitted by those unscrupulous businesses anyway. Your earnings claim statement will simply not deter fraud. Our company makes no statements about earnings, although providing guidelines for possibilities. It would be very simple for dishonest people to provide inaccurate information. Your legal actions statement is probably the least problem, but still makes honest business people suffer by providing information about legal actions that were resolved favorably. As far as cancellations and refunds are concerned, this information would be very misleading. Many people buy XanGo to relieve a specific ailment and cancel when their condition is improved. This is not a negative situation but a positive situation. In short, it appears that your rules have been wirtten with only the negative aspects of multi-level marketing in mind. XanGo provides not only income to our home business, but huge health improvements to our buyers. These rules would make it very difficult for us to operate. Many people who receive health benefits from drinking XanGo would not be able to afford the product unless they are able to sell it. My wife and I request that you reconsider these rules changes and develop others that do not hinder the 98% of people who are honest. The attachment describes some typical XanGo representatives in this area and their stories. All are friends and business colleagues. The local Fenton Tri-County Times newspaper considered the information so important that it was published on Page 1 about a year ago. Please note their positive health and business experiences