| Comment Number: | 522418-09925 |
| Received: | 7/15/2006 1:42:42 PM |
| Organization: | |
| Commenter: | Dave Davis |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
The Honorable Cliff Stearns U.S. House Of Representatives 2370 Rayburn House Office Building Washington, D.C. 20515 Re: The FTC’s "Business Opportunity Rule" R511993 (16 CFR Part 437) Dear Chairman Stearns, Please help HALT the FTC rulemaking Process that will drastically inhibit our precious domestic freedom to participate in direct selling opportunities! On April 12, 2006, The Federal Trade Commission published an Orwellian 42 page "Notice of Proposed Rulemaking" in the Federal Register. It is misleadingly entitled "The Business Opportunity Rule." It should be called the "Government Rule to Ruin the Business Mans Dreams”. It is inadvertently or deliberately designed to dampen the enthusiasm of new prospects considering multilevel business opportunities. It will have a devastating impact on the entire direct selling industry. It will smother millions of good-faith Americans with paperwork and records who are making a living as multilevel distributors. For about 25 years the FTC’s Franchise Rule covered only those opportunities that required a buyer to make a payment of at least $500 within the first six months of operation. The April 12 2006 proposed Rule completely eliminates this $500 exemption! Please Reinstate this Exemption. Why would this law be created to add to the costs to operate the business to more then it costs to start and operate initially than you could loose in the initial start-up cost. If this law is passed, then the government is making it impossible for many people to start their own business opportunity. We, the small people won’t be able to afford their part-time business due to the government. In 1979, to justify the reasonable $500 exemption, the FTC wisely said: "When the required investment to purchase a business opportunity is comparatively small, prospective purchasers face a relatively small financial risk. Actually, I believe it should be updated for inflation to at least $750 or more. As the new proposed Rule would only cause additional costs, paperwork, and harm to the American way for ability to start a small home business. Please reconsider the wording as proposed. Respectfully Submitted, Dave Davis.. Concerned Citizen and Home Business Advocate