Comment Number: 522418-06326
Received: 7/5/2006 11:25:27 PM
Organization:
Commenter: Tony Croteau
State: ME
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I am glad to see a proposition of this nature and truly hope it does become a ruling. Having been a recent Market America distributor, had there been the 7 day waiting period as well as a full disclosure of the details of the corporate refund policy, my wife and I would never have gotten involved with Market America. As it is, we have been trying to get out of Market America. In fact, we tried to implement their verbal 90 day refund policy; we were then told that it would not be a full refund but only a partial based on the consumption of goods purchased with the start up kit (not what was stated in their "First Look" meeting) then we were strong armed into believing that if we let our distributorship lapse, we would be responsible for our upline losing BV - which also turned out to not be the case. Market America, at least by our experience, needs this type of legislation in place so that they operate by fair and non-deceptive practices. While you will be doubtlessly receiving a letter from countless Market America distributors stating that the start up kit only costs about $100, this in and of itself is not entirely accurate. The distributor that signs in someone usually will badger the prospect into entering in at a supervisory level, which is approx. $1100 more and basically "educate" the prospect that its a waste of time to do otherwise. Then, if J.R. Ridinger has his way, the very same prospect will get soaked for another $260 for a ticket to a convention as well as not state that to attend most of the required meetings ranges in price (anywhere from $5 to $30/person). That's almost $1500 - a far cry from the $100 those letters state. I am not stating anything that is not stated in the audio and written guidance provided by Market America; J.R. flat out states that he will not sign someone up without selling them a ticket to a convention as well. Said meetings happen at least once per month, depending on the function. "CORE" meetings can happen once per week and vary in price much the same as listed above. Another comment made in their letters might be that people buy TV's, VCR's, etc. all the time and they don't have to wait 7 days to buy those items. What is purposely overlooked is that enrolling in Market America is more than just the purchase of an electronic item; it is an initial investment into what someone is led to believe will be their key to financial independence. Without the resources and time available for a prospect to accurately assess, neither Market America nor the prospect can truthfully determine if the Market America plan is right for that individual or couple. Market America should be embracing this legislation; they tout that they have full disclosure and transparency. If so, then why are they afraid of a 7 day waiting period? What are they hiding? The fact that they raise issues with this legislation raises questions in my head about the legitimacy of Market America. Why are they hesitant to disclose their refund policy? No business is in business to give refunds; that's why businesses offer the best products they can along with the best customer service. But they also publicly proclaim that they are prepared for unforseen circumstances. A REPUTABLE company doesn't take issue with this process and policy. Kudos to your organization and whomever it was that concocted this proposal. Market America, Reliv, and other companies like them need to be roped in by this legislation. You have my support totally with this. Cordially, Tony Croteau