|Received:||5/23/2006 9:53:52 AM|
|Organization:||MLM Survivor's Club|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I encourage you to adopt AND enforce the proposed rule changes, especially with regard to MLM or multi-level marketing opportunities. If at all possible, I would like to see the rules include a requirement that sellers disclose the average gross income and the average cost of purchases made by participants over the previous one or two year period. This would help prospects evaluate the true income-generating potential of such opportunities. I also favor a long cooling-off period between submission of application and acceptance into the business opportunity. A period of at least one week (7 days) seems appropriate, from the time all disclosure documents are received and the time the applicant can begin participating in the business. This will give time to review the documents, do further due diligence, consult references, etc. Thanks for your consideration and the good work you are doing. I hope you not only pass these rules but get the funding to provide adequate enforcement. MLM frauds are rampant and must somehow be reigned in. I believe your new Business Opportunity Rules are a much-needed and timely step in the right direction. I wish you much success!