|Received:||7/6/2006 2:04:57 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I fully support the proposed Business Opportunity Rule R511993. Any rule that merely demands claims to be documented and truthful, with corroboration/evidence to substantiate those claims, with legal penalties for purposeful deception, can only benefit consumers and potential investors. Of particular interest to me is the waiting period, which would give potential investors time to perform due diligence in researching any business opportunity before committing funds to it. My ex-wife was a victim of a well-known national company. The local distributor was quick to tout the possibilities of income potential but loathe to discuss the realities. When questioned about net profits, they were quick to promote everything under the sun as a business-related activity to be treated as tax writeoffs to make your bottom line better...Did you get your car washed this week?...Write it off!. If these companies were forced to tell the truth about the profit that the average sales consultant netted after expenses, they wouldn't be able to recruit anyone to sell their snake oil.