| Comment Number: | 522418-04384 |
| Received: | 6/26/2006 6:47:37 PM |
| Organization: | |
| Commenter: | Pierce |
| State: | NC |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
My husband and I met through a direct-selling business. We have been married for 5 years and I have been in the business for 9 years. We have both experienced tangible and intangible benefits from our networking business. I reviewed information pertaining the FTC's proposed Business Opportunity Rule. As you contemplate this rule, please do so in the light of our entrepreneurial forefathers' vision. The business owner is the foundation of this country. I am excited that the FTC will be going after the unscrupulous characters who take advantage of hopeful citizens. In doing so, please do not hinder the efforts of honest, ambitious business owners. My parents registered me into this networking business. They provided me with potential income and the average income of all business owners in this particular organization. My first exposure to the business was at a seminar with over 100 people in attendance. Information was at my fingertips the entire way. Our prospects typically spend between $125 and $170 to register. The entire amount is 100% money back guaranteed for 6 months. With this 100% money back guarantee, I don't think a person should be forced to wait 7 days to sign up. They will have 6 months to change their mind if they choose. In this day of privacy and terrorism, no one would want to share a list of 10 associates information with a prospect. The prospect could sell this information to another business or use this information in an illegal manner. In our business, we bring new people into environments where they can speak with 10 or more people in person. A list of 10 associates would not be in the best interest of existing business owners. As an executive in corporate America, I don't share my income with my co-workers or potential employees. It's just not a kosher practice. In the same manner, I don't think that people would be comfortable sharing their incomes with prospect. The prospect could release this information in a harmful way or just invade upon an existing business owner’s privacy. My husband and I share a document that spells out the income potential and clearly states the average income of people in our business. If anything is going to deter a prospect, seeing an average income of less $100 will do it. We are not making as much money as we would like to. We honestly answer any question that our prospects ask us. They come to our home and see our cars and the size of our home. They can tell we aren't at the top of the pay scale, yet. Increasing the burden on legitimate business owners will not deter the illegal, dishonest "get rich schemes." I am glad you are trying to break-up these schemes but please consider many alternatives. Create an easy to use website that lists all identified pyramid schemes. Communicate schemes to the public as they are identified (like a most wanted list). Educate the public on how to identify an illegal scheme (if the business has these 10 characteristics beware). Some of the proposed rule will work. Just be sure that we do not trump the efforts of legitimate, motivated Americans in the process of combating these schemes.