| Comment Number: | 522418-08807 |
| Received: | 7/13/2006 2:05:56 PM |
| Organization: | XanGo LLC |
| Commenter: | Karen Wiles |
| State: | OH |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Business Opportunity Rule R511993 MLM companies have been a part of our nations economy for many years. I, as a independent distributor of product, fully understand how the MLM system works. I also want to express my concern for keeping our market open to the free enterprise system. My current involvement with this company started less than a year ago. This is not my first experience with MLM. Many companies offer superior products to consumers that cannot be found in a retail store. I was drawn to this product I represent because of the superior quality of this company and the high standards they present. In my opinion MLM can give everyone an equal opportunity to succeed. Each distributor is paid according to the growth of their business. Retail stores operate in the same manner, donating more time to the business usually generates more sales and greater profits. We distributors are constantly building our business on 3 major points. We promote product on consumer need. We build friendship with potential prospects and we offer the income opportunity to our customer. I know you will not find these values at any major retailer, because most often one can not find a clerk to help locate a product, or answer questions. Unlike retail, MLM distributors have to be versed on the product line as all our contacts are individual. I believe as a consumer that every retailer should be accountable to know the products they sell. Most retailers sell products to turn dollars and so ends the responsibility to the comsumer. Buying products at retail level can never generate any source of income for the buyer. These conditions are by-products of free enterprise. I dont believe enterprise is free. Our goverments have allowed retailers to merge into marketing giants. They build extravagant facilities, pay low wages, limit hours of service to avoid paying benefits, undercut the prices of other local retailers until they go out of business. These giants operate under tax abatements. We learn by example that free enterprise is not free. I cannot think of an example when a MLM company moved into the community bringing financial destruction of local economics in their wake. We distributors carry the responsibility of taxation. I believe major retailers get rewarded with tax breaks that MLM distributors will never have. We pay our own way on taxiation. MLM can lend opportunity to income. Start-up fees are low and we can work from home. Earnings depend on our level of committment. I have been self employed in the past. Investments were a good sum of money and I had a strong will to succeed. The business did not last 5 years. I was fortunant I could recup my loses. The largest contributing factor to my failure was government intervention on small business. I just could not survive the taxation. MLM can be a refreshing change from my previous burden. I know the FTC is a good organization and must act to protect the consumer. Past experience has taught me that government regulations can come with a high price. I believe this will happen as you case study the MLM business operations. I know the FTC is aware of the consumers that are not intelligent enough to be protected no matter how you change the policies. Many consumers have proved their ignorance by their spending habits alone and using credit well beyond their means. Our government has given tax incentives to large corporations that in turn have destroyed small business. One final blow to consumers is the millions of dollars paid to chief executives of large corporations each year. These executives are at the helm of a sinking ship. This has led me and many others to MLM companies to provide supplement income. We can no longer count on our lost pensions we earned throughout the years to see us through retirement years. Please leave the MLM structure as we know it now, the way it currently operates. Thank you for reading and responding to my concerns regarding my right to make a living.