| Comment Number: | 522418-06368 |
| Received: | 7/6/2006 2:21:58 AM |
| Organization: | |
| Commenter: | Kiley Bush |
| State: | MO |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
In my opinion, it is the duty of the Federal Trade Comission to protect American citizens from the fraud, deception, and ensuing financial ruin that is the inevitable result of Multi-level marketing scams. Without access to the information they need, there is no way for the public to discern between a reasonable business opportunity and an outright scam. These financial disclosures are imperative to the safety and security of the average American citizen; 1. All multi-level marketing companies must comply with earnings-claims disclosure rules. No multi-level marketing company should be given an option of making "no earnings claims". 2. Multi-level marketing companies must disclose the average retail-based income earned by participants in each level of the hierarchy. 3. Income disclosures of multi-level marketing companies must include: -- The total number of all participants who joined in the past year, not just the so-called "active participants" in one part of a year. -- The average NET, not gross, income of participants in each level. Average net income is the average of all monies received from the company by participants minus the average of all moneys paid to the company by participants in each level. Expenditures paid to the company include product purchases, renewal fees, shipping costs, books, audio and video tapes, training and motivation seminars, computer fees, etc. "There must be control in order to protect the people, and adequate control is only possible through the administrative commission." -Theodore Roosevelt