| Comment Number: | 522418-05795 |
| Received: | 7/3/2006 3:28:35 PM |
| Organization: | XanGo |
| Commenter: | John Rodriguez |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Federal Trade Commission/Office of the Secretary, Room H-135(Annex W) Re: Business Opportunity Rule, R511993 600 Pennsylvania Avenue, NW Washington, DC 20580 To whom it may concern: I am writing this letter because I am concerned about the proposed Business Opportunity Rule R511993. I believe that in its presented form, it could prevent me from continuing as a Xango distributor and negatively impact my home business. My regular job is very physical and I won't be able to earn a living from it for much longer. I've been involved with Xango for over three years and have earned enough monthly income so that my wife was able to quit her job and achieve a measure of personal happiness. I would like to be able to use our Xango income to improve the quality of my own life as well. Please don't destroy our small business … we need it! We have helped hundreds of people improve their health or financial situation. Some of the sections in the proposed rule would make it hard or almost impossible for me to sell my Xango product. One of the most difficult sections of the proposed rule is the seven day waiting period to enroll a new distributor. This waiting period will give the public the idea that there’s something wrong with our business model and also reflects badly on me. I also think this seven-day waiting period is unnecessary, because Xango already has a 30 day 100% buyback policy for all products purchased by a distributor or customer. The Xango distributor kit only costs $35. People buy TVs, cars, and other items that cost much more than that and they don’t have to wait seven days. Under this waiting period requirement, I will need to keep very detailed records when I first speak to someone a prospect and will then have to send in reports to my company. I am a small home business and this burden will hurt or destroy my business. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. I am glad to provide references, but in this day of identity theft, I am very uncomfortable giving out the personal information of individuals (without their approval) to strangers. People in my organization may be subject to sexual or racial harassment so this part can’t go in at all, unless the FTC passes an addition to this rule prohibiting sexual or racial attacks related to this disclosure. In the end the rule must bind the FTC to take direct enforcement action on sexual and racial attacks with a special unit assigned to monitor actions related to the disclosure forms. In conclusion, I feel that this rule will not stop Crooks – they already violate the existing laws. But I am a good American citizen and it will hurt me. Thank you and please help me. Sincerely, John A. Rodriguez