Comment Number: 522418-03492
Received: 6/20/2006 10:53:48 AM
Organization: Xango Distributor
Commenter: Charles Cohen
State: MA
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I am writing to you today regarding Business Opportunity Rule, R511993. I've been an active distributor in the network marketing field since 1991. Although I have a nice job with a solid technology company, I've always been attracted to the idea of finding the right business I could work from home that would give me a "plan B", should I ever lose my job. Network marketing has provided that opportunity to me. I've participated in many companies, learning a great deal along the way. I've met fantastic people who've helped me grow as a person and helped me learn new skills. I've learned about how to be a leader, learning to be selfless and how smart, diligent effort is the surest way to succeed. Another benefit has been the products I've discovered that have measurably improved my health, saved me money made me money. These products are now helping people I love do the same. Just the other day, my father asked me where his residual check was (I collect it for him) from one such program we both participate in. He and my mother both faithfully use products I recommend to them and they feel they have benefitted from this. I truly feel that being exposed to these products and businesses that I have has helped me put my family and myself on the right track to financial and physical prosperity. I've recently read about the FTC's proposed legislation to control the industry. Much of what I have read appears to be well-intentioned and I certainly agree with trying to screen out the predators out there who bilk people and try to do more harm than good. But some of the sweeping reforms appear to be overkill. Here are just a few of my thoughts on your proposal: Regarding providing references, I personally would not know how to go about finding 10 of the nearest ones in the area in which I do business. I do business all over the country and the world. I feel this would severely hamper efforts to expand. Legitimate businesses should not have to go through this kind of practice. It would be better to have a business establish its legitimacy up front, rather than having them jump through this kind of hoop after they get started. Futhermore, many people don't want their contact information freely shared. It becomes a privacy issue. I know I would not want mine floating out there in the wrong hands. With regard to the 7 day waiting period, this would create a record keeping nightmare. Many distributors sign up en masse day after day. Keeping track of these potential distributors would be a large administrative task. It just doesn't make sense. Plus, it casts the industry, in general, in a negative light. Also, some people are excited when the first see something. It strikes a chord within them. Many people lose their excitement or interest when it takes too long to get involved. This can have multiple negative effects on the person involved from loss of the product benefit, loss of potential revenue to them, loss of being ablt to help someone they know, etc. Lastly, I think the idea of litigation reporting is well-intentioned, but could be modified to be more appropriate. People often view litigation as a negative thing. We all know there are predators out there that purposely try to cast a company into a bad light by starting up a suit. There are many frivolous suits out there. There should be a way to filter out these frivolous suits. Also, you really need a way to help the person doing due diligence to ascertain the winner and loser in the suit. These are my chief concerns with your proposal. Please do not pass something that is so restrictive and still needs a lot of work. I believe this will hurt a lot more good people than the ones it is intended to stop. Best regards, Charles Cohen