| Comment Number: | 522418-06688 |
| Received: | 7/7/2006 12:59:10 AM |
| Organization: | |
| Commenter: | David Johnson |
| State: | FL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I wish to express my concern for certain provisions of the proposed Business Opportunity Rule R511993. 7 Day Waiting Period--- It saddens me to think the collective common sense of the American people can no longer be trusted to make a $32 decision and therefore a 7 day waiting period is needed. $32 was the membership fee 11 years ago to become a preferred customer of Melaleuca. Today it is still $32. It costs me $45 to fill my gas tank every two weeks and I am told I just have to accept it. Decide to invest $32 in a membership fee and I will have to wait 7 days for my own protection. For a paltry sum of $32, a mandatory 7 day waiting period casts a gray shadow on the Direct Sales Industry. It gives the Public the impression that the industry is seedy and corrupt and needs greater oversight than other industries. The $500 limit set in the Franchise Rule is a reasonable sum to use for a 7 day waiting period. There should be no waiting period for lesser amounts. Common sense should prevail. Legal Actions--- Contingency litigation is as common as grocery shopping. The vast majority of people have never been sued. I believe their perception would be, ‘If you’ve been sued, then obviously you’ve done something wrong.’ Our society is so conditioned to be skeptical, potential business seekers will shy away from legitimate opportunities because of a presumption of guilt. How will a business seeker ascertain the outcome of dropped, settled or sealed actions? Anything but a guilty verdict will cast doubt in their mind. A business seeker should be informed only if any of the principals have been found guilty of the specified actions. References--- Compulsory references invade so many areas of business privacy and personal safety. For starters, a company’s entire customer database will be made available to opportunists who will attempt to steal away customers. The opportunist, under the pretense of interest, can obtain reference lists of existing customers to pitch their opportunity. In addition these names can now be sold to list seekers. I can only imagine the number of complaints customers will make to their company for disclosing their contact information to total strangers. I firmly believe companies will lose customers because of this provision. Summary--- I have been involved in the direct sales industry for 11 years. I view the network marketing opportunity as one of the best opportunities the average American can participate. The proposed items I’ve referenced above only serve to impose undue burdens and hardships on companies and customers who have conducted themselves with the highest of standards. Collectively, our vision is one of prosperity for all who wish to participate in the American Dream. You can not legislate dishonesty, greed or stupidity. They will always exist.