| Comment Number: | 522418-05990 |
| Received: | 7/4/2006 6:58:24 PM |
| Organization: | |
| Commenter: | JoAnn Fullmer |
| State: | ID |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
RE: Business Opportunity Rules To Whom it May Concern, I understand the motivation behind the proposed changes in trying to govern business opportunities and prevent deception and fraud. As a single mother of three boys, who had medical problems that neccessitated my leaving my full time job, I found myself searching for alternative sources of income. I fully support the majority of the changes you have suggested. Often excited, eager (often naive) people are encouraged to promote business opportunites without knowing all the details. However I am against the provision that requires notification of all legal action that has been brought against the business owners, or the company that they are contracted with. I feel that it is descriminatory because no other small business industry is required to do the same. In a day and age when people are lawsuit happy, anyone can be sued for any reason be it legitimate or not. Requiring businesses to disclose all lawsuits etc.. would effectively put the company out of business regardless of actual guilt or innocence. If the FTC requires Direct Marketing or Multi-Level Marketing Businesses to make such a disclosure, then all businesses (regardless of their organizational structure) should be required to do the same. (To level the playing field) After researching for over a 1 1/2 I found a multi-level marketing company that has indeed been a blessing to my family. I do not see any of the proposed changed adversely effecting my business (and my ability to support my children) EXCEPT for the lawsuit disclosure proposed change. The MLM I work with is Quixtar - and I am very happy with the customer support I recieve. People are generally already VERY SCEPTICAL about doing business with an MLM anyway - because of the pyramid schemes and etc. It Quixtar had pending lawsuits and I personally had to disclose them, it could potentially kill my business. I know several general contracters who have been sued by homeowners - that are still able to carry on their businesses. They are not required to disclose their suits so why should a Direct Marketing (or MLM) business be any different? Thank you for your efforts to clean up this particular industry - but I caution you to not be over zealous. Thank you!