Comment Number: 522418-11992
Received: 7/17/2006 5:20:56 PM
Organization: Gano Excel, Inc.
Commenter: Meg Friedrich
State: MA
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

Dear FTC Friends: The proposed Business Opportunity Rule R511993 has recently come to my attention, along with considerable concern. My business with Gano Excel, Inc., as an Independent Affiliate, could be jeopardized by the proposed ruling in its present form. I understand that you are committed to protecting the public from fraudulent sales practices, but some of the sections in this proposed rule, as I see them now, will create ~ in my opinion ~ impossible obstacles for those of us who are engaged in legitimate entrepreneurial marketing practices. The greatest concern I have involves the seven-day waiting period for enrolling a new Affiliate. To accommodate anyone who changes his mind after making the decision to become an Affiliate, Gano does have in place a 90% buy-back policy for all products and sales kits purchased by a salesperson within the last twelve months. Furthermore, an individual can become a salesperson for $24.99, which does not seem to me to be an excessive price, when considering other purchases that people are free to make ~ such as expensive furniture, cars ~ without having to ‘think it over’ for seven days. The paperwork that would be required for the enrollment process would, I’m sure, be burdensome at best. On another point, concerning the release of any information regarding lawsuits involving misrepresentation, or unfair or deceptive practices: inasmuch as lawsuits are so prevalent in the current climate these days, it would seem to me that requiring the release of information ~ whether innocent or guilty ~ would put Gano and me at an unfair advantage. Certainly when a person purchases an automobile, the dealership is not required to reveal their legal activities in any way. With all due respect, I fail to see why the purchase of a $24.99 business Affiliateship would require such a revelation. My third and final concern is that of requiring the disclosure to prospective salespeople, the contact information of a minimum of ten prior purchasers. Especially today, when there has been so much fear of identity theft, people are extremely reluctant to reveal their contact information, and consider it an invasion of their privacy. They willingly give this information to an ethical company ~ such as Gano Excel ~ in whom they have complete confidence in their ethical standards; but to reveal it to strangers (ten of them for EACH prospective Affiliate) would put our trusted affiliates ~ especially women ~ in a vulnerable position. I can’t imagine anyone these days letting him/herself be put into that kind of a compromising situation. And I do think it would be the death of my business. My affiliation with Gano Excel over the last year (I joined them as an Affiliate in August of 2005) has been an extremely positive experience. Their customer service department goes the extra mile in every respect, giving its sales force and customers every benefit of the doubt. I was introduced to the business through their exceptional products and, after enjoying and benefiting from the products, I wanted to share them with others. I have never for a minute regretted that decision and I support my fellow Affiliates in the work they do to share the Gano experience with their own circle of friends and associates. Again, I do appreciate the work that the FTC puts into protecting consumers, yet feel deeply that the consequences that would result from this proposed new rule, would affect ~ in a very negative way ~ the work that so many of us law-abiding, tax-paying citizens, are doing. Although unintentional, I feel that, as the proposed rule stands at the moment, Gano’s Affiliates would be unnecessarily burdened. Hopefully, the FTC will be able to achieve its goals with less distressful consequences. Thank you for considering my comments. Yours most sincerely, Meg Friedrich Proud Gano Excel Affiliate #8068121