| Comment Number: | 522418-03408 |
| Received: | 6/19/2006 5:56:41 PM |
| Organization: | |
| Commenter: | David Hanson |
| State: | WI |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
RE: Business Opportunity Rule R511993 To Whom It May Concern: I am writing this letter because I am concerned about the proposed Business Opportunity Rule R511993. I believe that in its presented form, it would prevent the business I operate from continuing, and would destroy the small business I have worked so hard to build and operate, as well as those of, literally, thousands of others. I have been operating a home based business, as an independent distributor representing XanGo™ LLC, for over 18 months now. I decided on building this particular business because I loved the product and wanted to share it with others. Many of the people I have introduced XanGo™ to are now operating their XanGo™ businesses very successfully and it has allowed them to finally start getting ahead financially, and build equity in something other than their home. For the average person, direct selling is the only real option of business ownership. Adopting the proposed rule (Rule 511993) would devastate the growth and profit potential of the business we operate. The proposed waiting seven day waiting period would be overly burdensome and would make it extremely difficult for the new business owner achieve success. I believe this seven-day waiting period is unnecessary, because XanGo™ already has a 90% buyback policy for all products including sales kits purchased by a salesperson. Additionally a 100% total money back guarantee, which applies to any new enrollee, is guaranteed for these new enrollees and is currently and daily exercised freely by anyone purchasing from XanGo™ within the first 30 day period. The current procedures in place by XanGo™ already insure that no one can ever be hurt financially by the XanGo™ business opportunity. The proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. This would be easily turned into a violation of. While the good, honest companies would of course comply, the unscrupulous companies, the very ones you are trying to stop, would create false information, and easily fake their way around this rule. Further it is likely that many “prospects” would be competitors attempting to find generate a list of new people they could recruit opening an organization to attack. XanGo™ is an excellent company, please do not lump great companies like XanGo™, which has a 100% money back 30 day guarantee, into the same barrel as those who currently take advantage of others daily with no repercussions. If you wish to go after those who are damaging or hurting innocent people, I will salute you, but for please, insure that any proposed rules will not be detrimental to the incredible volume of sales created by the Direct Selling Industry, a Multi Billion Dollar industry today. To do so would hurt the United States economy tremendously. Respectfully submitted, David Hanson