Comment Number: 522418-12184
Received: 7/17/2006 6:59:35 PM
Organization: Xango
Commenter: Aurea Wilson
State: IN
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

Dear Sir or Madam: I am writing this letter because I am concerned about the proposed Business Opportunity Rule R511993. I believe that in its presented form, it could prevent me from continuing as an Independent Distributor for Xango and destroy my small business. I have been an independent distributor for Xango for 2 years. Originally, I started my Network Marketing because of the product. I had chronic fatigue syndrome and fibromyalgia. My problem started several months after my gall bladder surgery. The mangosteen-xango is the product that really helps me get my health/life back. I noticed significant improvement after 2 weeks of drinking the juice that I have to cancel 2 of my doctor’s appointments. I did my own research regarding the product and started sharing it to my friends. I noticed that every time a friend that I’ve referred buys the product I get paid. I started doing my research about the business and found out that it is a very good home-based business. Xango opportunity is a very legitimate business.I love the product. I enjoy sharing the opportunity to anybody that has a need and I started making more money and wanted to earn more to replace my income as a traveling pediatric physical therapist in the school system. I enjoy sharing the product to anybody because the product works and the business is great. The proposed Business Opportunity Rule R511993 will significantly affect my small home based business. It will really hurt me especially that I am considering a career change as I am not able to go back to work as a pediatric PT at this time. Some of the sections in the proposed rule would make it hard or almost impossible for me to sell my products. One of the most difficult sections of the proposed rule is the seven day waiting period to enroll a new distributor. The waiting period will create a tremendous inconvenience for me in recruiting prospective purchaser that I meet while traveling. This waiting period will give the public the idea that there’s something wrong with me or our plan and will also reflect badly on me. I also think this seven-day waiting period is unnecessary, because Xango required a very minimal up-front financial investment. Xango also has a generous buy back policy which presents little or no risk to a prospective purchaser. Xango sales kit only costs $35. People buy TVs, cars, and other items that cost much more than that and they don’t have to wait seven-days. Under this waiting period requirement, I will need to keep very detailed records when I first speak to a prospect and will then have to send in reports to my company. I am a small home business and this burden will hurt my business. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. I am glad to provide references, but in this day of identity theft, I am very uncomfortable giving out the personal information of individuals (without their approval) to strangers. This requirement is overly burdensome and evokes confidentiality and privacy concerns for all involved. Logistically speaking, because I don’t know where the prospective purchaser lives before meeting him/her, it will be difficult to have this information available to disclose until a later time. This will further prolong the seven days waiting period. I appreciate that FTC has a good intentions in proposing this rule. The intent is to protect all citizens including me from falling victim to hurtful and fraudulent schemes, however if adopted, this rule will have a devastating impact on my small home based business. This will require significant changes in my selling method. Thank you for taking time and consideration on this matter. All the help I can get is and will be greatly appreciated. Sincerely, Aurea Wilson