| Comment Number: | 522418-01684 |
| Received: | 6/10/2006 7:56:34 AM |
| Organization: | |
| Commenter: | Katy Li |
| State: | MD |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
PLEASE PLEASE make this proposal into law! Untold numbers of people lose money in MLM scams every year in this country! I lost $1200 in Mary Kay, and if I had been given basic statistics about the company I never would have joined. MLMs make inflated income statements at every opportunity, flash potential recruits their big checks, and never disclose all the expenses involved. They purposely lie to recruits to get them to sign up and buy lots of products. While I do not think this proposal goes far enough, it is a start. MLM companies MUST be required to disclose statistics on how many people sign up and fail each year, as well as the statistics on what percentage of the sales force is actually drawing any income, and how much. They should also be required to disclose the number of representatives in a given zip code (i.e. : MARKET SATURATION) These MLM companies are telling recruits that the market cannot be saturated, and any one can earn money if they work the program - these lies are causing hard-working Americans to lose vast amounts of money every year. Canada requires MLMs to do this; it is time for the United States to catch up and stop these scam artists!