| Comment Number: | 522418-03785 |
| Received: | 6/22/2006 12:16:45 AM |
| Organization: | Xango |
| Commenter: | Cheryl Silva |
| State: | MO |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Dear Sir or Madam: I am writing in regards to the proposed Business Opportunity Rule R511993. Business Opportunity Rule R511993 as written, could counter the positive aspects of my home-based-business as a Direct Market Distributor. I have been a Distributor for Xango, for almost 2 years. I love the product, plus as a Distributor I am able to build a residual income for my retirement, a necessary thing. Business Opportunity Rule R511993, proposes a seven-day waiting period that could cause the public to believe there is something wrong with our plan/product/company. I believe that all companies are not created equal. If the company has a 90% buyback policy for all products including sales kits, and the fee to become a Distributor is less than $40, (Xango fits this description) a waiting period should not be imposed. It is true that people buy TV’s, furniture even cars for a whole lot more and they do not have to wait seven days. If they did, our economy would fly out the window. Also, under this waiting period requirement, I will need to keep very detailed records when I first speak to a prospect and will then have to send those reports to my company. This will place a huge burden on me and discourage anyone I introduce to the business. Finally, I feel uneasy giving prospective buyers detailed, personal information on previous buyers. This opens up a whole new can of worms. If prospective buyers want to know who else bought, I invite them to a meeting and previous buyers can disclose their own information if they feel so inclined. I should not be the one to disclose another’s personal information. Doctors and lawyers would lose their clients not to mention their practice if they did such a thing. I know your intent is to stop the Crooks. But, the Crooks will keep on and pay no attention to your rules. The above rule does not help the honest Distributor. It will make it easier for the Crooks. Thank you for your evaluation regarding this matter. Cheryl Silva