| Comment Number: | 522418-08951 |
| Received: | 7/13/2006 6:01:31 PM |
| Organization: | |
| Commenter: | Rick Rule |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
The proposed ruling for providing a full disclosure places a disproportionate burden on small businesses. It will essentially cripple the Network Marketing industry while not providing the protection that is intended. An average person receiving a fraudelent disclosure may be given a false sense of security. Most legitimate business offer adequate refund periods, often 30 days, which actually gives the person the ability to get a better evaluation than pieces of paper before. It's business opportunities like network marketing that provide millions of people the ability to improve their financial situation. Without network marketing, my financial situation would not be nearly as good as it is now. The vast majority of business companies are legitimate and honest. The company I work with is a publicly traded company that is governed by other regulations which provide a legitimate safeguards against fraud. These proposed rules would dramatically interfere with our ability to operate as a viable legitimate business. Eradicating large industries because of a few fraudulent operators would damage large segments of the economy while not providing the desired benefit. Enforcement of current business opportunity laws would provide more of a safeguard.