| Comment Number: | 522418-06051 |
| Received: | 7/5/2006 7:37:47 AM |
| Organization: | XanGo LLC |
| Commenter: | Leroy Heath Sr |
| State: | IL |
| 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 XanGo LLC, Independent Distributor, and destroy my small business. I have been an independent distributor for more than 15 months. Let me say this is the best company I have ever been associated with. My goals in life can be reached with XanGo LLC, as it is currently set up. Originally, I started my Network Marketing bussiness because of the great bussiness opportunity, after trying the product my family and I are very pleased with it. Now I earn some additional money. With effort I see where it will grow to meet all of our needs, even now my family depends on this extra income to supplement our budget. Please do not destroy my small business, we need it! Some of the sections in the proposed rule would make it hard or almost impossible for me to sell the busniess opportunity of XanGo LLC, it's products and services. This waiting period will give the public the idea that there is 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 LLC, already has a 90% buyback policy for all products including sales kits purchased by a salesperson. One of the most difficult sections of the proposed rule is the seven day waiting period to enroll a new distributor. Sales kits only costs $35.00. I can buy almost any high dollar product and not have a waiting period. People buy TVs, cars, and other items that cost much more than that and they do not have to wait seven-days. Under this waiting period requirement, I will need to keep very detailed records when I first speak to a prospect and will then have to send in reports to my company. I am a small home business and this burden could destroy my business. 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 should not go in at all, unless the FTC passes an addition to this rule Prohibiting sexual or racial attacks related to this disclosure. 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 Telephone, Internet, and in the mail, also I have been approached by many crooks in person. This rule will do nothing to stop them. They hurt my business! This rule will not stop crooks, as they violate the current rule all the time. But I am a good American citizen and it will hurt me. Thank you and please help me. Sincerely, Leroy Q. Heath Sr