Comment Number: 522418-08960
Received: 7/13/2006 6:21:48 PM
Organization:
Commenter: Gloria Evans
State: OK
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

July 13, 2006 Dear Sir or Madam: I am writing to express my concern about the proposed Business Opportunity Rule R511993. In its present form, I believe, it could prevent me from continuing as an Independent Gano Excel Affiliate. Although part of the FTC’s responsibilities is to protect the public from “unfair and deceptive acts or practices”, some sections in the proposed rule will make it very difficult, if not impossible for me, to sell Gano Excel products. In my opinion, this ruling appears to discriminate against the networking industry, which is a very important contributing segment to the nation’s economy. It is increasingly becoming the only way for people over 50 to make a living. One of the most confusing and burdensome sections of the proposed rule is the seven day waiting period to enroll new Affiliates. Gano Excel’s sales kit costs only $24.99. People buy TVs, cars, and other more costly items, without waiting seven-days. This requirement gives the impression there might be something wrong with the business. I think this seven-day waiting period is unnecessary, since Gano Excel already has a 90% buyback policy for all products, including sales kits purchased by an Affiliate, within the last twelve months. This rule would require keeping very detailed records of every initial prospect to Gano Excel and having to send many burdensome reports to Corporate Office. Such time investment would negatively impact my personal, as well as Gano Excel’s national operations, just as would a required seven day waiting period for a non-networking business or sales company to hire a suitable applicant or to make a prospective sale. The proposed rule also calls for the release of any information regarding lawsuits, involving misrepresented, unfair, or deceptive practices. Consider the ramifications if a non-networking company were required to provide any prior 10-year litigation or civil or criminal legal actions to every job applicant or prospective customer.. Today, anyone or any company can be sued for almost anything. To me, being required, without cause, to disclose these lawsuits does not make sense. Otherwise, Gano Excel and I would be put at an unfair advantage, even though having done nothing wrong. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers, living nearest the prospective purchaser. In the day of identity theft, of which I too, have been victim,. people are extremely concerned about their privacy. They are reluctant to share their personal information with individuals they may have never met. Although glad to provide references, I am uncomfortable giving individuals’ personal information, without their approval. Such disclosures could damage the references’ business relationships, as they may be involved in other companies or businesses, including those of competitors. Since 80% of direct sellers are women, this rule may subject women to potential harassment or endangerment. Furthermore, getting the list of prior purchasers would require sending the prospect’s address to Gano Excel and waiting for the report. I think many would be prevented from wanting to enroll as a salesperson by the following requirement: “If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers”. Furthermore, is any non-networking business or sales company required to disclose such contact information, earning particulars, or legal details of company, supervisors, and employees to a job applicant or prospective customer? Are nation-wide references from the past three years required, in accordance with home addresses nearest the prospect? To substantiate earning expectations, are such businesses required to disclose to a prospect specific time frames for bonuses or raises or to define employee differences? A single woman, with an elderly mother, whose health is failing, I have been an Independent Gano Excel Affiliate for two years. Originally, I became affiliated with Gano Excel, because I liked the products and wanted to earn additional income. After serious financial reversals, due to illness and relocation, Gano Excel’s vision gave me permission to dream again. Since that time, I, even though highly educated, have found fewer earning opportunities in this low economic small- town or surrounding area. Indeed, I prefer working independently with Gano Excel than claiming eligibility for Social Security benefits. I believe, if unburdened by such frivolous rules, I have an opportunity not only to contribute to the economy, but also to help extend Social Security funding to those in need. I appreciate the work of the FTC to protect consumers. However, I believe this proposed new rule has many unintended consequences. Surely with further deliberation, less burdensome alternatives could be found for achieving its goals. Thank you for your time in considering my comments. Sincerely, Gloria J. Evans