| Comment Number: | 522418-03482 |
| Received: | 6/20/2006 9:44:02 AM |
| Organization: | |
| Commenter: | P Daugherty |
| State: | CO |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Business Opportunity Rule, R511993 I appreciate the Federal Trade Commission protection priorities; and I have great concern for the impact of the ruling on legitimate direct selling businesses. I understand that there are fraudulent groups that do not act with integrity. However, this particular ruling would unfairly target the direct selling industry. My experience with this industry has only been very positive, as both a business person and a consumer. Some of the very best products are available only from direct sales. I have never had a negative experience with any company or product involved with this method of marketing. I have a professional office, where I treat clients who have chronic pain and stress; dedicating my life for 29 years helping people have a better quality of life. Earlier this year, in February, I was introducted to Mangosteen Juice, from a unique company called XanGo. This health beverage has made a positive difference in my own health and the health of my clients. XanGo also offers a wonderful opportunity to create a secondary income; since I am completely self -employed and need this additional income--I am very grateful for the integrity, wisdom and structure of this company. I am able to create a part time, eventually full time income by helping myself and my clients with improved health. The XanGo opportunity and the direct marketing industry has changed my life in many ways: increased confidence in myself, personal growth that is the natural outcome of being involved with positive people, goal setting, improved mental attitude, team work and helping others succeed in health and business. The 7 day waiting period would create a hardship in my business with the sale of Mangosteen Juice, casting the direct markeing industry in a negative light and creating an air of suspicion among prospective purchasers when told that the FTC requires such a waiting period. The waiting period suggests a level of risk that simply does not apply to XanGo and the purchase of Mangosteen Juice.--as well as most other direct selling companies. XanGo refunds money to the consumer if they are not completely happy with their product. In my personal experience--this has not been an issue. Because of the personal nature of the business, with consumers being sponsored by individuals--personal follow up for customer satisfaction is part of the built in structure. There is a very minimal membership fee of $35, with no mandatory need to stock products. In my particular business, it is imperative that I am able to have my clients receive the shipment of their product as soon as possible., without having to wait for 7 days. Mangosteen Juice is a unique plant that has anti-inflammatory properties; many of my clients are unable to take prescribed anti-inflammatories, due to allergic reactions or uncomfortable side effects. I have clients that now live out of the area where I am currently living and working; they need access to the product without having to wait 7 days. The disclosure requirements (names, phone numbers, addresses of 10 geographically nearest purchasers) would be overly burdensome and would be privacy violation for all concerned. There is already a fear factor with identity thieft among many people. This places the Direct Sales Industry in an unfair position. All distributors would have to agree to have their information disclosed to the prospective purchaser for possible contact. The disclosure of this information would not be limited to bona fide purchasers, but will have to be given to anyone, used for any purpose. This required disclosure would certainly discourage participation in the direct selling industry. A large part of the business is to share the business opportunity with others, who also are interested in having a part time or full time business. To have this ruling as part of our business structure would reduce the appeal of direct marketing.