|Received:||7/16/2006 1:05:22 AM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I believe these disclosure rules are absolutely vital to protecting people from multi-level marketing schemes, specifically Amway and Quixtar. I have never been in these organizations, but I was showed the "opportunity" by two individuals who were. I was told to write on my paper that I could make $60,000 in my first year, and $250,000 per year within 2-5 years. I have no proof, since they would provide me with none, but I am quite certain that neither of these individuals, nor any of the people they've signed up, have made this kind of money, even after being involved for well over a year. I also strongly recommend that in addition to the rules currently proposed, that the prospecting distributor should have to disclose how much money they personally have made, and how long they have been involved. As per the current rules, I was showed that the average income for Quixtar is $115 per month. This was quickly explained away by assuring me that this number was due only to the fact that most active distributors sign up and then do nothing with their businesses, and that if you really try, it will certainly work much better. This is no doubt, true as far as it goes, but they stopped far short of backing this statement up with their own earnings. I believe that if prospecting distributors (who are the really trying, well above $115 folks) had to back up the $60,000/$250,000 claims with their own earnings and how long it took them to achieve those earnings, it would open a lot of prospects' eyes to the deception. If they are allowed to show the plan without making official earnings claims, you can be absolutely assured that they will do so, but sneak in the claims through some loophole or other unofficial means. It is vital that they be held accountable for what they say in these meetings. Simple statistics bear out that far less than 1% of people ever get the income that is represented in those meetings, and even out of those who DO, it takes far longer than advertized.