| Comment Number: | 522418-10355 |
| Received: | 7/16/2006 9:53:06 AM |
| Organization: | Xango Independent Distributor ID 8834706 |
| Commenter: | Brooks Giglio |
| State: | FL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am a new distributor in Xango. My experience in the past four months has been incredible. Not only have I been pleased to be able to offer such a superior nutritional product but the response back to me from those I have shared the business opportunity has been so positive that my own feelings regarding whether I would be capable in such a business have been bolstered. It is difficult to get up the nerve to share a business opportunity. The training and support I have received have enabled me to do so. I have stepped up to the plate and have become the training facilitator for my team. By team I refer to both upline and downline as well as crossline. Because that is what this business model teaches us, to help all persons, regardless of their placement. Feedback from my team tells me they also feel their self-confidence rising. In addition to this we are forging new friendships within our network and strengthing old ones. The proposed FTC “Business Opportunity Rule, R511993” concerns me. In regards to elimination of the $500 business threshold, I understand the FTC must protect those whose initial investment would be considerable. For persons who join my legitimate business opportunity their initial investment is $35, therefore their risk of loss is minimal. Application of the Franchise rule does not protect them but erects a barrier for them to even consider joining my business. The 7day-waiting period is impractical for the direct sales industry. It would create frustration and confusion in my new potential business partner. Its effect would be to cause persons to simply lose interest, or believe that because the FTC requires this there must be something suspicious about my company. It is more appropriate for businesses that require a large investment of money, acquisition of local for the site of the business, or further investment for equipment necessary for the day-to-day functioning of the enterprise. This waiting period suggests a level of risk that doesn’t apply to many direct selling business models most of which require a minimal up front investment. The clause that requires me to provide the personal information of the nearest 10 existing sales persons is not only not realistic in terms of data collection but invades their privacy as well as the future privacy of the new person to which I am offering a business opportunity. I know of no one who would wish to join me in my business if they knew their personal information would be given out to strangers. It opens the door for identity theft, as persons who wish to exploit this would now be able to legally obtain personal information simply by posing as someone interested in a business opportunity. The HIPPA Act of 1996 was enacted to protect privacy of individuals, your website quotes the manner in which you protect personal information of persons accessing your site yet this proposed new ruling instead of protecting the public would open them up to both fraud and identity theft. The legal disclosures should be required to reflect the whole picture. Not only the lawsuits filed and prosecuted but the outcome as well. This better allows persons interested in the business to analyze the information. I know with your resources and research you have truly come across illegitimate scams and feel the need to protect an unsuspecting public. The broad applications of this current proposed rule “protects” them to the point of eliminating their ability to be involved in something legitimate. In effect this will adversely impact our economy. There are many legitimate business opportunities available today (Quickstar, Xango, Pampered Chef) to name a few, that provide real finantial security, new hope and restored self confidence and improved business and personal relationships to their members. I implore you to reevaluate the effect of these broad restrictions that should not be applicable to our business model. Brooks Giglio, Xango Independent Distributor, ID 8834706