| Comment Number: | 522418-09380 |
| Received: | 7/14/2006 1:20:27 PM |
| Organization: | White Bros. Ltd. |
| Commenter: | William White |
| State: | MI |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
The proposed Business Opportunity Rule will do nothing to stop fraudulent business practices in the network marketing industry. Instead, it would seriously harm legitimate entrepreneurs like myself with restrictive, burdensome regulations. The many part-time marketers (often from low-income families) who depend on this type of business to supplement their meager earnings might be forced to give it up. Scam artists would simply ignore these new hurdles or satisfy them with false claims, as they do today. Because it would be easier to skirt the rules than comply, in the end it may create more frauds while reducing the number of legitimate businesses. The solution is to enforce existing fraud statutes more aggressively. Punishing the entire industry for the actions of a very small percentage is impractical at the very least. If there is not enough staff to enforce existing rules, writing more only makes matters worse. Another point that bothers me about this proposed rule is that it appears to violate our constitutional right to sign a contract of our own free will with another private party. Please consider the serious negative consequences of these proposed rules and remove them from consideration. Thank you for listening to my views on the subject. Will Tyler White