| Comment Number: | 522418-07372 |
| Received: | 7/10/2006 4:31:52 PM |
| Organization: | Xango, LLC. Independent Distributor |
| Commenter: | Richard Hager |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
On April 12, 2006, The Federal Trade Commission published an Orwellian 42 page "Notice of Proposed Rulemaking" in the Federal Register. It is misleadingly entitled "The Business Opportunity Rule." It should be called the "Wet Blanket Rule. It is inadvertently or deliberately designed to 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. I appreciate you rapid attention to this matter. Respectfully Submitted, Richard Hager