|Received:||7/10/2006 12:21:12 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:Re: Business Opportunity Rule Date: July 10, 2006 My wife and I have been in MLM for over 7 years. We have tried other companies like Amway, Melaleuca, Quorum, and Jewelway; it is only in XanGo LLC that we really made money enough to pay our two mortgages. XanGo compensation plan is profitable, the product (mangosteen juice) works like no other supplement we have tried before, so therefore it drives the business. The founders are men of integrity and experience, and we trust them completely. Networking has developed our relationship with people, selling skills and confidence in public speaking. We learn how to keep track and organize our business using the latest computers techniques. Having a home-based business with very small start up capital is helping us watch our grandchild while doing work without leaving home. Unlike corporate America, people in this business help each other succeed in order to succeed, and many of us conduct this business as a second career or a back-up plan. If done following company guidelines, it is an excellent business model. We appreciate the FTC Mission to protect consumers; while there are fraudulent groups out there, the following rules unfairly targets good hard-working people like us: Seven-day waiting period - Will only create monstrous bureaucracy, red tape, paperworks, casts suspicions on the innocent, and is impractical. Why can Americans buy cars, jewelries, guns, drugs, clothes, and other big ticket items from merchants without waiting 7 days? The $500 threshold - Most average Americans cannot put up this amount to start a part-time home-based business. Registration as a member in Sam's Club, Costco, and other wholesale club is only about $35. Sales kit of all companies we joined don't even come close to $500. Surely, $500 is beyond reach of most prospects I've contacted over the years. Certainly, many of my distributors will cancel their membership if this threshold is imposed. My business will collapse overnight. This will kill many would-be entrepreneurs. Litigation Reporting - Records of lawsuits will not distinguish between winning and losing, thus arousing suspicions that we have done criminal acts. Reporting all litigation regardless of outcome is irrelevant and time-consuming. Earning claims - While legitimate companies and individuals provides accurate datas, targeted crooks can't be trusted to come clean. It is also tedious to collect all required data. The company already issue us our W-2 for income tax purposes and we create tax file to justify our business, so more earning claims to another agency is burdensome. References - Impractical of finding "10 nearest existing sales people" in a small town or country; privacy and safety issues will be a concern because of corporate liability for identity theft; safety issues for women living alone, etc. Finally, I wish the FTC will zero in on fraudulent MLM businesses that makes outrageous claims of earnings. They give us unfair competition. And because millions have failed in these MLM scums, the good companies like ours gets a bad rap too. These companies advertised themselves in network marketing magazines and the media. Why can't government regulators investigate these companies, instead of putting up more regulations that hurt good, ethical, and legitimate home-based business? The reason for my concern is based on my years working with the other MLM companies I've worked with. One of this jewelry company was a fraud and collapsed. There are small companies also imitating a unique product like XanGo juice that are underselling and having hardly any significant medicinal effect but claiming the same benefits. How could the FTC allow these companies, with their unethical business practices, to continue operating in this country? Why create more paperwork and bureacracy when there is enough regulatory and enforcement work to be done in this industry alone?