|Received:||7/7/2006 3:38:53 PM|
|Organization:||Heritage Specialty Merchandise Inc.|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:Dear Sir or Madam: I am writing this letter because I am very concerned about the proposed Business Opportunity Rule R511993. I believe that in its presented form, it could hurt my business as an Independent Distributor of the XanGo Company. . I have been an Independent XanGo Distributor for one (1) year and have seen my business grow because of a great product, service and company. Originally, I started my Network Marketing business just to use the product. After I received a great result, I started to share my story with others and the business exploded. I have a great second income that I depend on. This proposed rule will destroy my small business because some of the sections in the rule would make it hard or almost impossible for me to sell XanGo, a great nutritional product. The proposed waiting period will give the public the idea that there is something wrong with the product. I also think this seven-day waiting period is unnecessary, because XanGo already has a 90% buyback policy for all products including sales kits purchased by a salesperson. I have never had a dissatisfied customer as a result of not having a waiting period. One of the most difficult sections of the proposed rule is the seven day waiting period to enroll a new customer. A XanGo sales kit is only $ 35.00. 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 will hurt my business. This proposed rule is bad. 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. This rule will not stop Crooks – they violate the current rule all the time. I am a good American citizen and it will hurt me. Thank you and please help. Sincerely, Michael D Harwood Heritage Specialty Merchandise Inc.