| Comment Number: | 522418-05770 |
| Received: | 7/3/2006 1:48:17 PM |
| Organization: | Xango,LLC |
| Commenter: | Sharon Dickerson |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
In January, 2006, I became an independent distributor of Xango, a health supplement in the form of a juice, the primary ingredient of which is a fruit known as "mangosteen." I am very pleased with its effects on my own health and well-being, and I very frequently receive similar reports from others who are using this juice. I became a distributor after responding to a radio ad regarding home-based businesses. The person with whom I spoke was very professional in her presentation of the product and the business opportunity, for which she made no specific earnings claims. My direct selling business is, at the present time, providing a small portion of my family income. As it grows, however, I expect that it will, in the near future, help to supplement my retirement income. Direct selling has also enhanced my life through the nutritional benefits which I have been able to offer to numerous friends, family, and new acquaintances. I understand FTC's concerns and obligations in protecting the consumer from fraudulent groups, but I feel that this rule unfairly targtets legitimate direct selling businesses in the following ways: Seven -day Waiting Period: This will cast direct selling in a negative light, will increase record keeping and administrative problems for both the companies and the individual distributors, and will lead to unnessary delays. Elimination of the $500 Threshold: This will force the majority of direct selling companies to comply with other provisions of the proposed rule that are more appropriate for businesses requiring a greater investment than a direct selling sales kit. Litigation Reporting: This seems very unfair in that it does not distinguish between winning and losing lawsuits - and could have the effect of causing the company/distributor to appear "guiltly until proven innocent" without even the opportunity for public announcement of an "innocent" verdict. Earnings claims: Those who are so inclined to make false claims will likely still not provide accurate data, while legitimate companies will do so at additional data collection expense. References: This is one of the most distressing aspects of the proposed rule. As a member of a health care profession for the past 37 years, I feel that privacy and confidentiality are always of utmost importance. Identity theft, too, could become a major issue, and, of course, finding the "10 nearest existing sales people" is impractical and unnecessarily time-consuming. Thank you for your consideration of my expressed opinions. Sincerely, Sharon Dickerson, RN