| Comment Number: | 522418-09117 |
| Received: | 7/13/2006 11:21:56 PM |
| Organization: | Xango |
| Commenter: | Edward Richardson |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
To whom it may concern, Business Opportunity Rule, R511993. I personally believe that this is a very strong attempt to help pilfer out the fraudulent companies that want to defraud people. But I believe it also will hurt the legitimate companies out there that can, and do good for people. I believe that a seven day waiting period will hurt my business, in more than one aspect. Such as when I’m on the road recruiting, or when asked why they need to wait seven days before they can sign up. I would be required by law to tell them this is an F.T.A. law. It would look like I’m trying to hide something or I’m not a legitimate business. My Xango business really has a generous refund policy, as well as a very minimal financial risk. I also believe that having to give out personal information to someone just because it is required of me, seems a little risky to say the least. I might be misunderstanding this part, but I don’t feel like I should have to give out my information so someone else could use it to maybe help sign up a prospective purchaser. I also don’t think the prospective purchaser would like it either. It seems to me that this would benefit fraudulent companies more than it helps the legitimate ones. As far as addressing the earnings statement issue. I am really concerned about this because, I believe it would very hard to produce such documents. I don’t have a problem producing factual earning statements, but it seems to me that a fraudulent company would just make up something and not worry about being fraudulent anyway. Then addressing the legal actions. I think that this is also very unfair because if you are fraudulent, your not going to show any of these documents, and if you did they would all be false anyway. Where as if I showed a new prospect documentation it would not tell what the results were, or if they were even relevant to the case, so I believe they could be very misleading. Addressing the final issue on refunds and cancellations. I feel it would not be fair to me or the company Xango, because the reason for quitting or wanting a refund, might not be because they felt something was wrong. But instead found what they needed and decided they did’nt need the product anymore. Where as some might feel they need the product for life. Having addressed these issues I feel that it would be a great injustice for the F.T,C to feel like they need to impose such harsh rules on the legitimate companies, such as Xango just so we can maybe stop some of the fraudulent scams out there. Saying this, I would like to say that I think maybe something needs to be done to put a stop to these scams , but I hope we can find a little better way without hurting the legitimate companies out here. Sincerely Ed Richardson