| Comment Number: | 522418-06125 |
| Received: | 7/5/2006 2:54:11 PM |
| Organization: | |
| Commenter: | Scott Vincent |
| State: | OH |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am submitting this in your Request for comments on the matter of MLM businesses; "Business Opportunity Rule, Matter No. R511993". After reviewing your initial proposal I would add that those restrictions are not strict enough. I have had several friends and family members who have gotten bit by the "get rich without any business knowledge" bug and it always costs them more in overall lost out of pocket monetary investment, lost time and lost revenue which could have been made by other means (i.e. in working at a legitimate job). The problem is many fold, once the "sucker" has gotten the "MLM mind set" then they simply can't give up the notion of making money without any real business knowledge. They think that suckering their friends into health potions, long distance phone cards or cleaning products will bring them fortune, just like the "top earners" who always seem to show up consistently at a new company with a new miracle product after their previous miracle product hit the down-side of the bell curve. I would like to see ALL MLM companies put out of business or at least raise the "franchise fee" to something along the lines of a legitimate business; say $100,000. If the limit is put any lower than that then a "sucker" will somehow find a way to borrow money to get into a business which they ""know" will pay out fast. No, I think that any franchise less than a brick-n-mortar business should be made illegal. The scary thing is that more and more MLM companies are turning to the internet for peddling their wares making it all the more easy to disseminate their faulty business models. I hope that very aggressive action is taken against this blight on what should be a hard working society.