| Comment Number: | 522418-04303 |
| Received: | 6/26/2006 1:27:22 PM |
| Organization: | |
| Commenter: | David Neuenschwander |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Thank you for your effort to "weed-out" fraudulant and unfair business scams. I worry, however, that the current proposal would place unneccessary burden on the legitimate and ethical businesses that are often poorly copied and used as scams. I am a member of the Direct Selling community and would personally be harmed by the requirement to allow 7 days before an individual could register. This requirement should be waived for any opportunity that allows the individual to receive his or her money back if unsatisfied. The "satisfaction guaranteed or money back" opportunities effectively remove the risk of anyone who decides to register. That being said, if the risk is zero because the money can be refunded, why should one have to wait a week to register? (I am not opposed to this requirement on businesses or opportunites that offer no such refunding.) The requiring of a list of references is most harmful. First, an individual just starting his business would have no such references, and would therefore face MUCH hardship and discouragement. Second, the required references invade the privacy of anyone involved who may be listed as a reference. Third, a list of references is effective a list of other business-owners with whom the prospect could register. In this way, the person who first offered the opportunity to the individual would be at a disadvantage because he is required to give his competition as a reference. PLEASE consider these two points. I know of no other opportunity that an individual can participate in for under $100 and build a multi-million dollar company with only sweat-equity. Placing unneccessary burdens on legitimate businesses would remove an incredible amount of opportunity for success for the "average-guy" that doesn't have thousands of dollars to invest in traditional businesses. Thank you again for working to eliminate scams. Please continue searching for a way that does NOT cause hardship to business such as Amway/Quixtar, Mary Kay, etc... that have helped thousands of people achieve success with a direct selling or MLM business model! These respected companies strive for disclosure and integrity in their actions and genuinely want to help others achieve.