| Comment Number: | 522418-07320 |
| Received: | 7/10/2006 1:27:06 PM |
| Organization: | Independent Xango Distributor |
| Commenter: | Cheryl Habegger |
| State: | IN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Federal Trade Commission/Office of the Secretary, Room H-135 (Annex W) Re: Business Opportunity Rule, R511993 600 Pennsylvania Avenue, NW Washington, DC 20580 RE: Business Opportunity Rule R511993 To Whom It May Concern: My husband and I are writing this letter because we are concerned about the proposed Business Opportunity Rule R511993. We believe that in its presented form, it could prevent us from continuing as XanGo Independent Distributors and could destroy the small business we are working so hard to build and operate. My job of twelve years was eliminated on March 31, 2006. My husband and I became XanGo Independent Distributors at that time because we love the product and want to share it with others. My husband has his own small business and the income from our XanGo business will supplement the income I lost from my previous job. My mother, who has serious health issues, needed to come live with us. Since I have the flexibility of the small business, I am able to take care of her and meet her needs. This rule may force me to obtain employment outside the home and take away the opportunity to provide my mother the care that she desperately needs and deserves! Please do not take away this time that I have to share with my mother and give her comfort and security during this critical time in her life. Some of the sections in the proposed rule would make it hard for us to sell XanGo or introduce others to this wonderful opportunity. This waiting period will give the public the idea that there is something wrong with us or the business and will reflect badly on us. We think the seven-day waiting period is unnecessary because XanGo already has a 90% buyback policy for all products including sales kits purchased by a salesperson. In addition, XanGo has a 30 day, 100% money back guarantee on the product for all new distributors that have just enrolled. One of the most difficut sections of the proposed seven-day waiting period is to enroll new XanGo distributors. The XanGo sales kit costs only $35. People buy cars, TVs and other items that cost much more and don't have to wait seven days. Under this waiting period requirement, we will need to keep very detailed records when we first speak to a prospect and then will have to send the reports in to our company. We are a small business and this burden could devastate our business. This is the opposite of what the XanGo business opportunity was designed to do. Procedures are currently in place by Xango to insure that no one can ever be hurt financially by the XanGo business opportunity. The proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. We are very uncomfortable, in this day of identity theft, giving out personal information of individuals to strangers, with or without their approval. Women in our organization may be subject to sexual or racial harrassment. The FTC will need to take direct enforcement action on sexual and racial attacks with a special unit assigned to monitor actions related to the disclosure forms. This could hurt everyone. There are so many scams on the Internet and we have been approached by crooks many times. These crooks hurt our businesses. This rule will not stop Crooks - they violate the current rule all the time! We are good American citizens and this will hurt our small businesses. XanGo is a family oriented company that cares about ALL of us. Please do not penalize XanGo and its distributors because of the "bad" companies that take advantage of others with no repurcussions. We will support your efforts if you wish to go after those who are damaging or hurting innocent people. Please do not destroy all the hard work and effort we have put into developing and operating our business. We are very proud to be XanGo Independent Distributors. Thank you and please help us. Sincerely, Edd and Cheryl Habegger