| Comment Number: | 522418-09494 |
| Received: | 7/14/2006 4:33:36 PM |
| Organization: | Independent Xango Distributor |
| Commenter: | Tom Walker |
| State: | NY |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Direct and to the point. The proposed regulations are like trying to rid your grass of weeds by applying a soil sterilent to your entire yard. The final outcome though will be worse than killing an entire industry. The new rules, as proposed, will strangle legitimate companies who are trying to comply, while the fraudulent ones (weeds) are going to flourish even more from reduced competition. Scam companies will only find fraudulent ways around the regulations. The net effect is that the problem will get worse and legitimate enterprise will be the only portion to suffer. I have been in network marketing for many years. The opportunity for personal growth and wealth is second to none other. Especially when you look at the entry investment of most bona fide businesses. Yes, there is a lot of abuse and fraud currently and I do support finding ways to reduce that. The current proposals though won't even come close. Let me suggest some less radical, but more effective measures you could take. 1. Require all companies to supply to a new independent affiliate, in writing within 7 days, a 30 day unconditional 100% money back guarantee. Further, steps must be spelled out, in a way that is easy to understand and execute, on how to terminate the original aggreement and collect a full refund. 2. On above form, an income disclaimer must appear that states that no income results are guaranteed or implied. 3. Same form should include an FTC method of contact to report any violation of the 30 day guarantee or other suspected fraud. 4. Companies must have on file a signed receipt from each assocate that they recieved the above in a timely fashion. I guarantee that the above rules would be a major blow to many scam opportunities while doing little harm to legitimate, honest companies. Thank you, Tom Walker