| Comment Number: | 522418-06742 |
| Received: | 7/7/2006 11:03:36 AM |
| Organization: | XanGo |
| Commenter: | Jennifer Mechling |
| State: | IN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I have just entered this business in the hopes of obtaining my financial freedom from a manipulative corprate world that makes just a few people rich and leaves the rest of us struggling to get by month to month. I appreciate the attempt at protection, but when that does more harm to those in business than it benefits the general public, then I can't see the justification. How many other businesses in the US have to provide a list of references before you can purchase it's products? I can't imagine Wal-Mart passing my name, address and phone number out to everyone who walked in the door. If I were to start my own dry cleaning business, would I have to wait 7 days to open after I have everything in place? Does a contractor have to produce all of these documents? No, he just needs a license number. If there are problems in the world of business, it would be with these people. All a prospective client needs to do is contact the Better Business Bureau to find out the status of the Network Business they are thinking of investing in. Any company worth its salt will be there. Investors should also check with the Direct Selling Association. If a company is not listed with either one of these agencies, pass them up. Network Marketing is so dynamic that the requirements you are suggesting would cripple the companies who are doing business legally and not stop those who are illegal. It would be easy to make up some names or forge financial statements. If these companies are already immoral, how would these requirements slow them down? In any business situation there is a "buyer beware" attitude. Legitimate companies make if very clear what the buyer should be looking for and what critera they should use before getting involved with any network marketing company. If they are not sure then maybe the FTC could direct them to Robert G. Allen's book, Multiple Streams of Income which has an entire chapter on Network Marketing or Robert Kiyosaki, The Business School for People Who Like Helping People. This is an entire book dedicated to explaining why a leader in traditional business would go into network marketing if he had to do it all over again. It seems to me that the majority of people who get involved with scams have not done their homework. If a busniess makes you pay before you can get any information about them, then move on. If the investment is huge and the distributor has to keep lots of product on hand in order to be successful, there is another red flag. Today's premier network marketing companies do not even have the distributor collecting money or handling product. Maybe before the FTC makes some rules that will devistate the industry (wouldn't traditional businesses that throw lots of money to special interest lobbies be happy about that), it sould focus on an education program. The FTC should alter its idea for this law by taking into consideration the problems with identity theft alone. It is good that you want to do something to help people, but I think it needs to be thought out a little more.