| Comment Number: | 522418-07251 |
| Received: | 7/10/2006 2:11:31 AM |
| Organization: | Quixtar I.B.O. |
| Commenter: | Kevin Kincaid |
| State: | WA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Sirs, It is nice to know that the FTC is concerned about fraud in the MLM and direct sales industry. Having been involved in Amway (Quixtar) since the 1970's I have seen a few bad companies come and go. I have also seen alot of good companies come and stay in business. However the proposed rules concern me. Making a customer wait for 7 days? Not good. How about the company offering a money back guarantee? Legal companies do that already. Having to provide a list of names? Not good. Either it will be the same 10 names no matter where you go or there will be alot of unhappy people because their privacy is gone. Listing all the past lawsuits? Not good. If you must have some type of listing have it be listed by the company on their website. Then if a person wants to know they can get it correct. Oh, before you require the listing by MLM companies please get all motels, hotels and gas companies to list all of their past lawsuits. That way I will know in advance who I want to stay with. The financial disclosure rules. Not good as written. Every TV ad about income and every radio slot about income always gives the best case . Every flyer in the mail only lists the top seller. You need to go after those guys first then come back to MLM. Require the MLM's to show 4 different cat. (1)top 10% avg. (of dealers, IBO's or whatever you want to call them), (2) the bottom 10% avg., (3) the middle avg. and (4)an overall avg. If its a good bussiness they will tell the prospect. If it is a sham they will forge the numbers and one will ever know the difference until it is too late, even if you make them wait 7 days. The problem is that people only hear what they want to hear. It is very rare for a person to educate themselves on MLM's and how they work and why they work. So the prospect goes into a meeting wanting only to know how to make alot of money but they never stop to learn about what is going on. Making them wait 7 days will not force them to learn more about MLM. Making them wait 7 days won't stop the bad guys from stealing the money. If they are running a pyamid scheme they will be gone with the checks and money long before the 7 days are up. You need to put the 7 day rule into place in the auto industry. That way no one buys a car until they have time to think about it. Also the high pressure sales person will be gone. Just as you won't put such a rule in place for the auto industry shackling MLM with such a rule will harm the business also. Please rewrite those rules or cut them out of the proposal. Kevin