| Comment Number: | 522418-06527 |
| Received: | 7/6/2006 4:09:55 PM |
| Organization: | XanGo |
| Commenter: | Tamara Williams |
| State: | WY |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am writing in response to the proposed New Business Opportunity Rule R511993. If not modified, it will be a significant impediment and burden to the network marketing industry. This new rule, although well-intended, represents a significant burden to the free market trade. While the FTC may have good intentions, these proposals are misguided and will do nothing to prevent anyone from scammers. For example, to protect others from being (taken) to the tune of $35 (our membership fee), the rules would impose several disclosure requirements, a 7-day waiting period, multiple references, and the names of several XanGo users in the geographic area where the prospect lives. First of all, when you apply for a second mortgage or a Line of Credit against your home, there is only a 3-day right of rescission! And, there is no waiting period to buy a car even if it turns out to be a lemon. Also, previous owners, accidents, or maintenance records are not required. Dealers don't provide references (although some of them should :) or disclose any lawsuits they may have or had against them. My point is that the cost of joining XanGo is miniscule compared to these other major investments and yet the proposed requirements are way out of balance.