| Comment Number: | 522418-04664 |
| Received: | 6/27/2006 9:27:16 PM |
| Organization: | Xango |
| Commenter: | Norman McElvy |
| State: | AL |
| 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 this letter because I am concerned about the proposed Business Opportunity Rule R511993. I believe that in its presented form, it could prevent me from continuing as a distributor for the Xango Company and would ultimately destroy my business. I have been in business as a Direct Sales/Network Marketing distributor for over 30 years. I have operated my business full-time for almost 20 years. My purpose is more than the income I derive from my business and that it allows me to support my family with honest and good work. My primary purpose is to serve my follow man in any way possible and this business has allowed me to do so. I implore you to not destroy my business because it serves a lot of people! Some of the sections in the proposed rule would make it hard or almost impossible for me to sell my products. One of the most difficult sections of the proposed rule is the seven day waiting period to enroll a new distributor. This waiting period will give the public the idea that there’s something wrong with me or our plan and also reflects badly on me. I also think this seven-day waiting period is unnecessary, because Xango already has an extremely fair buyback policy for all products purchased by a salesperson or a retail customer. Xango’s sales kit only costs $35.00. People buy TVs, cars, and other items that cost much more than that and they don’t have to wait seven-days. Under this waiting period requirement, I will need to keep very detailed records when I first speak to someone a prospect and will then have to send in reports to my company. I am a small home business and this burden will hurt or destroy my business. This proposed rule is bad. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. I am glad to provide references, but in this day of identity theft, I am very uncomfortable giving out the personal information of individuals (without their approval) to strangers. Women in my organization may be subject to sexual or racial harassment so this part can’t go in at all. In the end the rule must bind the FTC to take direct enforcement action on sexual and racial attacks with a special unit assigned to monitor actions related to the disclosure forms. I have seen many scams on the Internet and been approached by many crooks because of my success. This rule will do nothing to stop them. They hurt my business! This rule will not stop Crooks – they violate the current rule all the time. But I am a good American citizen and it will hurt me. Thank you for you consideration. Sincerely, Norman P. McElvy