| Comment Number: | 522418-03149 |
| Received: | 6/17/2006 5:54:46 PM |
| Organization: | self |
| Commenter: | george constans |
| State: | MN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
After experiencing the high pressure sales methods of Xango, Noni, Amway, Shaklee, and others, and seeing people bilked out of their savings with false claims, clever marketing, and high pressure methods, I believe the rule is sorely needed. Xango, for one, has notified distributors, and potential prospects of the Rule and urged a write in campaign of protest. The current rules against these disguised pyramid schemes are leaving many citizens losing their life savings to claims (disguised or open) that purport to lead to steady income and ways of life that are unattainable for the majority of the new applicants. Most of the Companies involved, like Xango, emphasize the sale of distributor or dealerships and not the sale of products as the way to continuing riches. Some companies solicit and pay for Doctor or Expert testimonials and infer from legitimate research on some component that their product contains, that their product is the cure-all of all time. People are desparate to regain health and bite at these marketing claims as being a solution to their problems--some even believing that they are improving in their health while symptoms persist and general health diminishes. Someone has to set up regulations that inhibit these hucksters and con men from victimiizing the ill and needy people desparately seeking answers. More so, someone needs to stop the availablility of these fraud artists from moving from one business entity to the next when the "pyramids" slow to lesser income for them and begin to have to depend upon product sales for the reality of the business. Example: Noni executives now running Xango. Please act to separate the legitmate opportunities that have made the American Dream a reality from the Fraud and Deceitful practitioners who prey on the public with unsupportable claims and exorbitantly high priced products designed to make the organizers and upper level distributors wealthy.