| Comment Number: | 522418-06370 |
| Received: | 7/6/2006 3:02:49 AM |
| Organization: | Distributor Rights Association |
| Commenter: | Cheryl Gonzalez |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| Attachment: | 522418-06370.pdf Download Adobe Reader |
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 Distributor in MLM and and Destroy my Small Business. My Name is Cheryl Gonzalez and I have been an Independent MLM Distributor for over 15 years and make my living by it. There is NO other income to support my family and so I owe a huge debt of gratitude to the MLM (Direct Sales) Industry that allowed me to pursue my Freedom from Corporate America. I came into this “opportunity” because a family relative introduced me and the integrity of this individual had a lot of positive influence in my life. I was NOT led into a scam nor have I ever had any problem that could not be resolved with a Company. I love this Industry for what it provides to “everyday” people who really want to get out of a rut and make something of themselves. I believe the personal growth and development of people is what this kind of business really IS. Some of the sections in the proposed rule would make it hard or almost impossible for me to continue as a Distributor: The Rule requiring the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. I REFUSE to be on such a list and I would imagine many of the females who are distributors would feel the same! 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 can’t go in at all, unless the FTC passes an addition to this rule. I would suggest: Prohibiting sexual or racial attacks related to this disclosure. In the end the rule must bind the FTC to take direct and immediate enforcement action on sexual and racial attacks with a special unit assigned to monitor actions related to the disclosure forms. A Liability Fund to reimburse harmed distributors. I STILL would REFUSE to be a participant in the required disclosure. It takes MY time away from doing what I do best and is not productive for ME or MY business! Please keep in mind…I am INDEPENDENT and the Company does not have a right to disclose my information to anyone. They do NOT own me! This rule of disclosure does not seem to be very well thought out. 1) Impractical - there may not be 10 people in a small town or county, 2) No mention of rules to avoid it being used as a deceitful tool by Scam Artists, or Sexual Predators. 3) Privacy issues due to ID theft and safety. I also believe the 7 Day waiting period is the most ridiculous thing I ever heard. People buy TVs, cars, and other items that cost much more than joining MLM and they don’t have to wait seven-days. Under this waiting period requirement, I will need to keep very detailed records when I first speak to someone (a prospect) and will then have to send in reports to my company. I am a small home business and this burden would destroy my business. This ruling would impact me because it casts MLM in a negative light which is unfair, it causes unnecessary delays for good people, it does not distinguish between Civil and Criminal cases to general public, and it is unfair that it does not distinguish between winning and losing lawsuits. What I would like to know is “what” does the FTC plan to do about the pyramid schemes that seem to take SO long to bring down? Or the money games (gifting plans) that forever go on? These scams and crooks take excellent prospects from me and every good MLM Distributor knows about them and their illegality. Those people will never go by the FTC rules and always seem to be well under your radar. Why do you seem to be “unfairly targeting legitimate direct selling businesses”? I was dismayed that a search on your site and specifically: http://www.ftc.gov/bcp/rulemaking/index.html did not provide any information on Business (see attachment)