|Received:||7/1/2006 7:30:30 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:Simply put from my experience in MLM - I would require MLM's and their downline to have the same standards and disclosure requirements as franchises have when selling a franchise to a prospective buyer. Also - there should be strict disclosure on MLM lines of sponsorship who sell CDs and training. A new recruit should be able to know if the up line of sponsorship is making money off the training they offer in their line of sponsorship. It is criminal for an MLM seller to show material items that were supposively bought by the MLM business, but in fact much of the money made to buy the riches came from the CDs or seminars the upline sold to there downline.