| Comment Number: | 522418-10716 |
| Received: | 7/16/2006 9:18:12 PM |
| Organization: | XanGo, LLC |
| Commenter: | Carl King |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Re: Proposed Business Opportunity Rule R511993 I have been involved in the Network Marketing industry for the past 41 years. My direct sales business has been a good source of supplemental income as well as a means for developing many new relationships and extensive personal growth. I also feel that every adult has the responsibility to sort through the information about any company and form their own conclusion based on the facts provided them. I appreciate the efforts of the FTC to protect the consumer but also feel that rules and regulations can be stretched too far to cover a simple situation. I understand there are fradulent groups in every industry however this should be controlled by the laws that are already on the books. I feel this rule is unfarily targeting legitimate direct sales businesses. The seven day waiting period would create a nightmare for every type of business whether selling healthcare products or soap. If you buy a car you don't have to wait seven days to drive it off the lot.....why should you when purchasing a product that could possibly help improve your health. This is an unneccessary delay and impracticle to compete in todays market place. As I understand it, the $500 rule would over burden the small one person operation. The small business contributes mightly to the U.S. economy and it has been a major growth segment. This free enterprise should not be hampered by burdensome bureaucracy. I feel the Litigation Reporting is totally unfair because it does not distinguish between winning and losing law suits. As far as the Earning Claims, I totally agree that no distributor/consultant should share this information with any new customer. However, if someone asks how they can make an additonal $200 to $500 per month we should be able to explain what it would take to achieve that goal by explaining the compensation plan. With regards to References it is totally impracticle to expect any company or any individual to provide other companies or individuals a list of clients or customers for reference. This could result in Privacy and safety issues as well as possible corporate liability for ID theft. This proposal risks the livelihood and future of millions of hard working honest Americans. If the purpose of this proposal is to stop dishonest "fly by night" marketers and false and deceptive direct selling practices, I believe the FTC has the enforcement clout to do so and we applaud them for that! This proposal adds nothing to that goal. In our industry no one benefits by a negative business enviornment created by a few dishonest people. I appreciate the opportunity the FTC has given me to express my views and experiece. Respectively submitted, Carl W. King