| Comment Number: | 522418-06699 |
| Received: | 7/7/2006 3:45:37 AM |
| Organization: | Send Out Cards |
| Commenter: | S. Lau |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
RE: Business Opportunity Rule, R511993 Dear Sir or Madam: 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 Distributor and destroy my small business. I have been a distributor for a 1.5 years and have been interested in building another complementary business. I originally started my Network Marketing business because of the excellent products/service. I loved them and needed to earn some extra money. Now my family depends on this added income to supplement our growing expenses for kids activities. Please don’t destroy my small business.....we need it! This waiting period will give the public the idea that there’s something wrong with our plan or the industry, and also reflects badly on me. I also think this seven-day waiting period is unnecessary, because most legitamate companies already have a 90% buyback policy for all products including sales kits purchased by a salesperson. The seven day waiting period to enroll a new Distributor also adds an unnecessary burden and anxiety on the business owner. Instead of this burden, more emphasis should be placed on having prospective distributors to do their due diligence in evaluating a legitimate company. Send Out Cards sales kit only costs $299. 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 hurt or destroy my business. This proposed rule discourages business growth. 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. Women 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. I have seen many scams on the Internet. This rule will do nothing to stop them. They hurt my business! This rule will not stop Crooks – they violate the current rule all the time. But I am a good American citizen and it will hurt me. Thank you and please help us build businesses....not hinder them. Let's focus on keeping good, legitimate companies, and erradicating the scams before they start....and not hinder the majority of well meaning people who just want to build a better future for their families. Sincerely, S. Lau