| Comment Number: | 522418-03493 |
| Received: | 6/20/2006 10:58:39 AM |
| Organization: | MXI Corp |
| Commenter: | Megan Overton |
| State: | ID |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I appreciate the job you are doing trying to prevent any fraudulent business practices, it makes doing honest business easier, but punishing those small business owners who are finding success in a legitimate and beneficial company through applying the same rules for a franchise is not the way to clean up the fraudulent busnesses. If you do this you destroy many peoples chances for succes in a small business that could never afford this kind of opporunity with out network marketing. Also, you will encourage the founders and creators of some of these great products to sell to the large companies like walmart instead of selling their products through network marketing which means the rich get richer and the struggling members of society have even less chance of doing something great. I can get behind the elemination of deceptive practices like preventing the use of shills, if the product can not sell itself without these deceptive practices then the company does not deserve to survive. And if there are legal actions against the company the consumers and enrollees should be aware of the issues, this will encourage the companies strict legal adherance. But there has to be a way to apply these kind of specific preventions without applying all rules that apply to franchisees to network marketing since they are totally different structures of business and can not suceed with the same rules. All the legitimate and good Network marketing companies I have known of (and there are a lot!) allow enrollees to cancel membership and stop receiving product at any time. In addition, the cost to buy in is usually very low, and the person enrolling is usually mostly buying product which they can usually return or sell if they decide it is not something they need. Unfortunately there are a lot of dishonest, or manipulative practices employed by people even in good companies, but the companies are trying to contol these practices for their own success and if they do not their success will most definately be short lived (bad news travels faster than good news). I would encourage some legislation protecting consumers if you can find a way that does not also include discouraing or frusterating honest business practices. Please remember that all consumers have a responsibility to educate themselves on any company or product they are considering on investing in and while they need some protection, overprotection can lead to the suffocation of some truelly beneficial opportunities and results. The Network marketing company I am involved in encourages ethics in both its business practices and its products and is inspring in both. My health and the health of those I know and care about has been improved and this goes beyond a testimonial, the doctors can provide the proof. Financially, this company has also benfited us, but only because the information about its product proved themself FIRST! Please don't prevent us from being able to share this product first, and secondly this opportunity with other people who need and want it.