| Comment Number: | 522418-04498 |
| Received: | 6/27/2006 2:23:04 AM |
| Organization: | quixtar.com |
| Commenter: | Paul Spencer |
| State: | AZ |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
re: "Trade Regulation Rule on Business Opportunities." I would like to comment on the proposed rule for direct selling business opportunities.I have been an IBO for 4 years. I was introduced by my friend to this opportunity. I went to a formal meeting and was given the FTC disclosures on the opportunity. I made my choice to join and so I got in. I understood that this was not an overnight success and that it was a sales and marketing business. I, like my prospects,typically pay around 175 dollars, 100 of which is readily useable products such as vitamins, protein bars, and energy drinks. the other 75 pays for a small business registration fee and the entire years worth of literature. All of which is refundable for atleast 6 months. A 7 day waiting period would be pointless - you don't need a 7 day waiting period to buy a car that you cannot return for a refund. As grown adults, being of legal age of 18 when you can smoke, drive a car, purchase a rifle and ammunition - anyone can quit and get the money back. Not a big deal. Enough said. Providing references is a nice idea - however I know of many people that don't want their contact information floating around, especially in the age of identity theft. I know I wouldn't want all my information circulating around, especially since I have a young family. Just imagine some sex offender getting the addresses of 10 families who are in our business. Great idea huh? Enough said. Requirement to provide litigation - Thats a great idea - why don't you publish every lawsuite and litigation for the FTC or any other government institution before anyone gains access to their information. I also don't feel that I should be represented by the entire network of IBO's who have been in the business in the past or who still are and do stupid things. Legal cases are taken care of at the court level. I propose if that is to be the case with direct selling businesses, then you should require that every single corporation has to disclose every single legal case and litigation to every single employee before working there. Good idea right? Again, if you don't like it, everything has 6 months money back - including education materials and if done properly - every legitimate business expense is written off on your taxes. The requirement for specific earnings disclosures: I don't know why the disclosure isn't good enough as it is. Our disclosure is very complete and would only add complication to a very simple business. The requirement for financial substantiation: I for one do not lie about what I'm making from my business - however, you don't require a company to disclose their accounting information to every new employee because it isn't their business to know that. Likewise, its none of anyones business other than the IRS how much anyone is making. If someone makes a claim and its not true, it also wouldn't be the first time in america someone has lied about something. And like I said in the beginning. This is a land of opportunity. If you want to restrict people and make a rule for every decision they have the chance to make, then it ceases to be a republic and it becomes a communist society when people don't have the chance to screw up and fail. Try china for example, you can't do ANYTHING without government involvment. They people of america need less control and more encouragement to try in their lives anyway. and speaking about disclosing information about opportunity - Social Security - doesn't it seem necessary to inform every american that the money taken from their checks is never coming back to them if they are under a certain age? sounds like a scam to me.