| Comment Number: | 522418-11876 |
| Received: | 7/17/2006 4:15:46 PM |
| Organization: | Xango |
| Commenter: | Matthew Huss |
| State: | CO |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
To whom it May Concern at the FTC: This letter is to express concerns about the proposed Business Opportunity Rule, R511993. My name is Matthew Huss and I have been an independent distributor with Xango for 3 years. I have been a business owner before, but never have I been able to have my own business for $35 like it is with Xango. Because the business is available to other people for an affordable price it has made it easier to build a business and increase my income and confidence. I have grow so much in this industry because it has helped me come out of my shell and become more confident, but not only has it benefited me personally, but financially as well. The commissions I receive from Xango are crucial to my financial well being. I appreciate you mission to protect consumer priorities, never the less I am concerned for the impact it would have not only on my personal business, the on other direct selling companies as well. I understand that there are fraudulent groups out there, but this particular rule unfairly targets legitimate direct selling businesses. I feel the 7 day waiting period, would cast the direct selling plan in a negative light, create record keeping and administrative problems, make unnecessary delays and is impractical. The elimination of the $500 business threshold forces the majority of direct selling companies to comply with other provisions of the proposed rule that are more appropriate for businesses requiring a greater investment than a direct selling sales kit. In regards to the litigation reporting it is unfair in that it does not distinguish between winning and losing lawsuits and irrelevance of the reporting of almost all litigation regardless of the outcome. It is difficult to collect the required data for the earnings claims and the "bad guys" will not provide accurate data, while legitimate companies will. I find it would very impractical to find the "10 nearest existing sales people" and it would compromise privacy and safety issues. Thank you for taking the time to read my message and for the opportunity to make my feeling heard. Sincerely, Matthew Huss