| Comment Number: | 522418-11265 |
| Received: | 7/17/2006 9:25:49 AM |
| Organization: | Quixtar Independent Business Owner |
| Commenter: | Omar Arellano |
| State: | FL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I'd like to start by saying that I appreciate the fact that the Federal Trade Commission is working hard and looking out for the best interest for both the consumer and the business owner as well. With that said I would also like to express a feeling of unfairness to those of us who are doing things properly and following the current rules and regulations of the FTC. I read this comment in the Proposed Business Rule: 32. Perhaps one business opportunity and franchise consultant said it best when she described many business opportunity sellers as:Individuals who go from one business opportunity to the next, violating laws, committing frauds, taking funds without delivering what was promised only to shut down the operation within a year and move on to another one with new officers, new company names, and new products. Although this may be true for some, why should the individuals/organizations that are doing things properly be penalized by added regulations or restrictions. These added restrictions and regulations reduce the creativity and productivity of the individual. I also read in the Business Opportunity Rule that : "Few, however, reveal their high drop-out rates, much less the fact that the vast majority of those who have joined the program—often 90 percent or more—will not recoup their investment.78" I don't recall ever having my advisor in College/Technical School revealing the drop-out rates, much less the fact that the vast majority of those who have graduated from such institution will not work in their respective fields and therefore won't recoup their investment. I believe that it all boils down to integrity and accountability. The individuals who are doing business in a proper manner will suffer and the productivity of their business will be hindered by these added rules and regulations. It is unlikely that individuals who take advantage of people will change their ways simply by added legislations, rules, regulations. Isn't it after all the responsibility of our Federal agencies to search and crack down these particular individuals? Sincerely, Omar Arellano Proud Quixtar Independent Business Owner