Comment Number: 522418-10943
Received: 7/17/2006 12:16:06 AM
Organization: Xango
Commenter: Karen Newcomb
State: NE
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I have only been working this business for about 7 months, and was only able to start in this business because of the low start-up cost, and easy way the company is set-up to take care of the bookkeeping. I feel very happy and privileged that I was lead to this product, and business, because it has literally changed the quality of my life, as far as giving me more energy and eliminating my need for prescription drugs to suppress my symptoms with many health conditions, mainly migraines. And because of its easy structure and marketing plan I am able to work this business even while I am teaching full-time. Also, because of the professional way that this company is run with such outstanding leaders, I feel very confident that this is an honest and reputable company.Because of the low distributor fee, I was able to afford to start on this wonderful product, and I can also bless other people who don't have a lot of extra money start a home business and the opportunity to get out of debt, like I am. I am a teacher and really could not get ahead any other way, so this has opened up a door for me for myself and many others. I do appreciate the FTC's consumer protection priorities, but am also concerned for its impact on legitimate direct selling companies. I do understand that there are fraudulent groups out there, but Business Opportunity Rule, R511993 unfairly targets legitimate direct selling businesses with a lower start-up cost than $500. I can tell you from personal experience, that I have tried many other home businesses with much higher start-up costs than $500 that all ended up being a scam that was so hard to implement without sinking more and more money into it, and still might not have produced. I felt scammed and ripped-off, so just because they have more start-up cost does not make them a reputable company. The seven-day waiting period casts the direct selling plan in a negative light, makes much more difficult record-keeping, and would impose unnecessary delays to get started on both working the business and being able to start on the product. This seems impractical to put such delays and restrictions on the use of this product. If small businesses are required to provide earnings claims ,it would be very difficult to collect the required data. Many legitimate companies might find it very difficult, while many illegitimate companies might be experts at fabricating false documentation. And finally, it would be impractical to have to find and list "10 existing nearest sales people. It would have no real purpose, and only make much more paperwork, thus discouraging many enterprising individuals to want to get started in such a complicated business. It will also cause concern to many individuals when it comes to their privacy and safety. It also would set up more opportunities for possible corporate liability for ID theft. Please don't put so many restrictions on starting a small business that noone has the opportunity to get ahead without having to make huge investments, or quit their jobs. Thank you for your consideration! Karen Newcomb