| Comment Number: | 522418-05402 |
| Received: | 6/30/2006 11:29:04 PM |
| Organization: | Quixtar.com |
| Commenter: | James Corley |
| State: | SC |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I agree with your attempts to clean out the fraudulant pyramid scams and other high entry, no product companies. These companies make it difficult for legitimate direct selling businesses with real products and services to conduct business. The proposal in place, however, has several key problems. These include providing prospects with lawsuit information, other contacts in your organization, and providing them with your income statements. Lawsuits are claims which can be made by anyone and don't neccessarily reflect any truth. Walmart, for example, settles many claims each year just to avoid court costs. They aren't always truthful claims but they are an aggravation to the company so they settle. Providing other contacts in your business industry offers your prospect the opportunity to join with someone else. It's the equivalent of taking a prospective sale down to a competitor and handing them over, it would create problems and remove the opportunity. Providing your income to a prospect would damage new participants from growing because they haven't begun to make any profit. Discussing the income of veterans in a business is fair because there is a need to prove profitability. The key here is that traditional businesses take 3-7 years to turn a profit so comparing to a person who just started would be uneven comparison. Your efforts to remove illegal and unethical organizations from the marketplace is appreciated but please take care in writing the rules so as not to limit and harm the positive, beneficial companies from doing fair, honest business. Thank you. James Corley