| Comment Number: | 522418-07205 |
| Received: | 7/9/2006 9:58:15 PM |
| Organization: | |
| Commenter: | George Bato |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
July 9, 2006 Re: The FTC’s "Business Opportunity Rule" R511993 (16 CFR Part 437) To Whom It May Concern, Please do not enact this rulemaking Process that will drastically inhibit our precious domestic freedom to participate in direct selling opportunities! The proposed Rule will dampen the enthusiasm of new prospects considering multilevel business opportunities. It will have a devastating impact on the entire direct selling industry. It will smother millions of good-faith Americans with paperwork and records who are making a living as multilevel distributors. For about 25 years the FTC’s Franchise Rule covered only those opportunities that required a buyer to make a payment of at least $500 within the first six months of operation. The April 12 2006 proposed Rule completely eliminates this $500 exemption! Please Reinstate this Exemption. In 1979, to justify the reasonable $500 exemption, the FTC wisely said: "When the required investment to purchase a business opportunity is comparatively small, prospective purchasers face a relatively small financial risk. Respectfully Submitted, George Bato