| Comment Number: | 522418-05936 |
| Received: | 7/4/2006 2:11:54 PM |
| Organization: | Xango, LLC |
| Commenter: | Mike Clemons |
| State: | OK |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I have been involved with this industry for 15 years and agree that there needs to be changes. We need to make changes for the companies that are scams but penalizing the good ones is wrong. We need to design a law that will benefit the good and stop the bad ones. The EPA has ways in regard to Carbon Credits for instance. They penalize the heavy polluters and credit the clean manufacturers. The seven day rule makes it easier to buy a hand gun then start a legitimate business. It is real simple look at the companies that have a high start up cost and pays on recruiting. Most scams run a fine line between product and recruitment. Have a maximum $50 administrative cost to enroll which Sam’s Wholesale charges me $35 to buy form them. What’s the difference??? Cut $500 to $50 that will stop the majority of the scams. Then the companies can pay commissions on products sold. Insurance companies do it all the time. Start a new division of the FTC to approve all products through a licensing fee that will self fund itself. This will keep all the scams out and real businesses in. This process would slow almost everyone down. Policing this would be simple have such a large fine including money and jail time to do business with out it would deter anyone. Appoint the top 25 companies on a board to help monitor it they always know what is going on in the industry. Buy the way they the top companies pay taxes just like all other businesses. IRS doesn't discriminate. To enable the companies to release personal information to join a business is wrong. Sam’s Wholesale doesn't. I buy from Sam’s for my restaurant and resale for a profit. Are you going to include Sam’s to release my information every time someone pays a membership fee in my area???????????? There has to be other answers. Direct selling is a good means of selling products but don't hurt the good ones for the scams. Please make some changes to get the scams out but don't hurt the good ones. Mike Clemons a concerned citizen