| Comment Number: | 522418-11490 |
| Received: | 7/17/2006 12:25:13 PM |
| Organization: | |
| Commenter: | Virgilio Gozum |
| State: | TN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| Attachment: | 522418-11490.pdf Download Adobe Reader |
Comments:
I am a Xango independent distributor for less than a year. I received an email from Mr. Gordon Morton and a guide how it will affect their business (much less do I care) regarding the NPR. It is also encouraging us to send a copy of my response to the FTC/NPR to Mr. Gordon Morton (which I have no intention to do so). I beg to differ on the following issues: a) Seven days waiting period gives the subscriber enough time to think and decide on her own and not under the persuasive/ influence of a network distributor. On that seven day period, subscriber has the time to hold or not to subscribe at all if he/she thinks it is not to their advantage. Many are not aware that Xango is being sold on ebay less the suggested retail price of the company. A NETWORK DISTRIBUTOR SHOULD MAKE A DISCLOSURE THAT XANGO IS SOLD ALL OVER THE INTERNET INCLUDING EBAY. I paid 125.00USD (100.00 USD cost of {750ml/ bottle} 4 bottles, 13.00 S&H, 12.00 state sales tax) Xango on ebay is being sold in the range of 80.00 – 100.00USD. Many of my customers learned about disparity of the price. They prefer to buy on ebay than buying from me. I told Xango, the company, I lost my credibility because of their lack or poor attention to the problem. It will be a good idea to know from the company, how many stop subscription, how many request for returns, how many have been reimbursed. >>> a paper work that they want to avoid. b) Cancellation and refunds. I had customers who tried the product for gout, migraine and cholesterol problem. Last month I spoke to Xango/Cal and I inquire about the “CUSTOMER SATISFACTION GUARANTEE” who tried the product but were not satisfied with the result. My customers want a refund. Xango’s policy is that their product, Xango mangosteen juice does not make claims of fixing those problems and that the product is a supplemental juice that is rich in Xanthones. A total blanket that this supplemental juice will prevent them from refunding the product to the customer. Xango/Cal representative accused me further that I made such claims that the product will give them good results which I vehemently denied because I am not a doctor. There are testimonials that we get from upper network distributors who compiled all testimonies. This is where the source I’m getting it. In short, the pointing fingers will go on and on. The distributor suffers and all the company does is make money without any liability or representations of refunds. In fact, Xango the company predicts making a record volume sales of approx one billion for 2006. Cox 2 inhibitors such as Vioxx, Celebrex, Bextra is not for everyone. In my case, it makes my blood pressure go high. Therefore, I knew that it is not for me. How do I know? I’ve tried the product. This is the same thing with Xango. Anyone who tried the product and did not get a good result,. Xango, the company should refund their money. Recommendation: FTC should review this anomaly. c) The use of Shills. Dr. Templeman/David A. Morton is one of the leading expert who is being used as a reference/guidelines on his research by all network distributors. When I mentioned to Xango/Cal representative that I used these materials as reference guide of the xango mangosteen juice, he stated: Xango, the company holds no claims and any relationship with these persons. What holds true with this is that they get paid with the infomercial they do in some ways by the company who are using them as reference. (God knows how) At some point, Dr. Templeman make such statements in one of his video as “clinical Trials” meaning to say, under FDA rules. FDA should review his statements and have any company that sells mangosteen juice to do clinical studies under FDA guidance even if it is supplemental if they hold no claims of how it is affecting their body. In March of 2006, I attended one of the seminar. The presenter stated that it is anti-allergy. It is safe to drink. I told him that the juice contains strawberry juice therefore, people who are allergic to strawberry cannot drink the juice (to be safe) He insist that it is up to Dr. Templeman and we’d like to hear from him(?). d) I wrote an email about the double blade policy of Xango, the company. I paid 125.00 for one box and sell it to prospective customers who wants to try the product at 32.00 (I cannot raise more than that as the internet is flooded with the same prices and that of ebay) below is the email I’ve sent to the top executive in the company. I never get response from any one from them. FTC should look into this issue, a very interesting twist of event who is really dumping the product on ebay. Attached doc in pdf file is the distributor_ftc_guide from Xango. To: Joe Morton, Executive VP, Operations &Distributor Relations Gordon Morton, Executive VP, Sales & Marketing Kent Wood, COO Brian Davis, Sr. VP, International Relations Aaron Garrity, President Gary Hollister, Chairman & CEO Cc: David Hilton Bcc: ALL MY UPLINES Gentlemen: I am compelled to a address this issue to you all because I am not happy with the manner Mr. David Hilton is addressing the issue here. Below please read the response from Mr. Hilton. This is my third time to address this issue. As an independent network distributor, I felt like I have to be updated on what have the company has done in stopping the proliferation of xango, at a price less than what I paid and sell to customers at 125.00 per box? Modesty aside, I can make more money if I buy xango at 100.00 USD on ebay, than making a measly 5.00USD as a monthly commission for one box from Xango, the company. We can’t talk of the long term commission as what Mr. Hilton is suggesting. We can’t make a long term commitment from our customers while we are being screwed establishing our network, short term by ebay. In the next four hours, watch this link and see how active bidding for xango on ebay. http://search.ebay.com/search/search.dll?from=R40&satitle=xango Watch the three boxes on this link how much it will cost. http://cgi.ebay.com/3-cases-of-XanGo-4-bottles-brand-new-exp-date-03-08_W0QQitemZ9528175590QQihZ007QQcategoryZ67557QQrdZ1QQcmdZViewItem Watch this active seller (almonroe60) of Xango http://search.ebay.com/_W0QQsassZalmonroe60QQhtZ-1 Sold today for less than 102.00 USD http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=9526007486&rd=1&sspagename=STRK%3AMEWA%3AIT&rd=1 http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=9528074762&rd=1&sspagename=STRK%3AMEWA%3AIT&rd=1 Based on these exploited price, what I was made to understand is that this product true value in the market cost 75.00 USD for the 4 bottles and 25.00 for miscellaneous expense such as S&H. While you encourage everyone in the network to sell at the suggested price, we are the one’s who get burned when we sell it to propective customers. WHY? It comes up we are more expensive selling at 125.00 USD. While Mr. Hilton is pointing his fingers to network distributors, my conspiracy theory is telling me that it is among you officers who get bonuses in terms of products. (he never pay attention to my argument with him) Gets someone to represent on ebay, and dump it. Freshwhip2004 is an example. This fellow was dumping 780 in March, 450 boxes in April. http://feedback.ebay.com/ws/eBayISAPI.dll?ViewFeedback&userid=freshwhip2004&item=5675324153&iid=5675324153&frm=1883&ssPageName=STRK:MEWA:SID If I am being affected, so do the rest of the network distributor who are the first line of contact with the customer. No one feels like to auto ship. They can buy it from ebay whenever they want at their own time. I have customers who consumes 1 ½ - 2 months time or 6 times in a year. This kind of auto ship enrolment should be available to these consumers. It is preventing them to subscribe because they cannot consume them all in a month. It is about time that the management should address this issue. It can’t be ignored. If you wait, one at a time, network distributor like me who is in direct contact with the customers will quit the business. I can’t tell exactly what futures lies if I can’t sell anymore. The time is now. “Good Will to those of Good Will” PEACE BE WITH YOU Virgilio Gozum Independent Distributor ========================== May 8, 2006 VIA ELECTRONIC MAIL Dear Mr. Gozum: XanGo appreciates your hard work and dedication to the company, its product, and the business opportunity. This letter is from the Distributor Education & Conduct Department, whose responsibility is to provide training and guidance to independent distributors regarding XanGo’s policies, procedures, and processes. Thank you for addressing us with your inquiry regarding the progress we are making with the sale of XanGo on eBay. In the last two months we have continued taking disciplinary action on many of the people who are selling XanGo on eBay. These actions have included but are not limited to placing distributors on suspension, terminating distributorships, and immediately removing listed auctions. In reference to Freshwhip2004, thank you for bringing their large number of auctions to our attention. We will take the information you have provided and follow through with the necessary and appropriate action. Furthermore, we are sorry to hear that you have lost credibility in your community. As you regain your credibility please consider a couple aspects of the XanGo opportunity. First of all, share with your contacts that no XanGo sold on eBay carries a guarantee from the company. This means that the company will not grant refunds and the product itself may not meet the consumers’ satisfaction. Secondly, purchasing the product on eBay may be cheaper but it discriminates the consumers from participating in the compensation plan. Thank you again for bringing your concern to our attention and please contact me directly with any further questions or concerns. Sincerely, David Hilton, Liaison Distributor Education & Conduct Department XanGo, David Hilton, Liaison Distributor Education & Conduct Department XanGo, Mr. Hilton, It’s been more than two months now that I complained about the product Xango, of which I am an independent Distributor has been greatly affected by the flooding of Xango BEING SOLD ON EBAY. My question to you is, WHAT HAS XANGO, THE COMPANY HAVE BEEN DOING TO STOP XANGO BEING SOLD ON EBAY BELOW THE SUGGESTED PRICE? In your email response to Mr Atkinson, which you have a cc to my email address ( I am the originating complainant of Xango being sold on ebay) YOU STATED: “Nevertheless, we can and do strongly encourage all distributors to sell XanGo at the suggested retail price.” You see, on your right hand you encourage us to sell at the suggested retail price. On your left hand, someone among you officers of this company who received bonus in terms of goods (the product itself) AND NOT CASH IS THE ONE I BELIEVE DUMPING XANGO ON EBAY. There is no way that a premier 20k, 50k, 100k or 200k can afford to sell the product in the range of 82-100 USD delivered. At this point in time, you should know by now or have identified who are these people and fix these problems. Have you ever had experience someone told you that “YOU HAVE NO CREDIBILITY?” …. I DO… while Xango’s potential to help people’s sickness, I LOST MY CREDIBILITY IN SELLING XANGO. Can this company fix my problem? Can my upline of my uplines can fix my problem? Well, after introducing providing sample tasters (Xango the company does not provide) which I burned more than 6 bottles in give aways from my own pocket for the past 4 months, I found that most of my prospective clients are computer literate. One by one found Xango being sold on ebay for astounding lesser the price that I set to sell at 125.00 USD per case. One of them was a PTA volunteer parent in the school where I also belong. I was heavily marketing to a lot of people (soccer and Academic decathlon combined 26 families in all) in this school. I distributed brochures, attended parties and Sampled Xango to many audience. Until all of a sudden, one family who bought Xango on ebay for 100.00 USD delivered in his house, LOST MY CREDIBILITY of marketing this product to a motherload of prospective customers. One by one to all people I introduced the product learned about the news and it is truly hard to defend myself and how hard it is to see being ridiculed after sweating to sell this product. This is the same story when my daughter was trying to get an audience to market the product. It was a hard time for her being SLAMMED while introducing the product that someone in the group stated that she can buy the product on ebay for less than 100.00 USD. If you have an ebay account, watch freshwip2004 this person is dumping approx… 780 boxes in March, 450 boxes in April and noticed the product originating in Salt Lake City, UTAH. Watch him sell in the range of 82.00- 100.00 USD/box . Whether you are not my upline of my uplines we have been affected by the prices these people bought from ebay. This is the guy, the motherload of all XANGO seller who is dumping the product in the market. http://feedback.ebay.com/ws/eBayISAPI.dll?ViewFeedback&userid=freshwhip2004&item=5675324153&iid=5675324153&frm=1883&ssPageName=STRK:MEWA:SID While everyone in my upline of my uplines are whining about Sam’s Club and Costco selling a THAI Mangosteen or Noni or Goji berry( a healthy competition that I can accept) I want you to know that EBAY IS THE MOTHERLOAD OF ALL EVIL THAT SELLS XANGO FOR AS LOW AS 82-100. USD DELIVERED. Xango, the company have not done any good in controlling the price in the market. Go to ebay.com and find out fro yourself. At least 20 – 40 people are actively bidding on Xango juice itself. If you translate it a month, it is 600 – 1200 people buying Xango at a cheaper price. This is a figure that can’t be ignored. And so Mr. Hilton, where do we stand now? I have sent this email response to my upline of my uplines.(I’d like to hear from you) I hope that they will investigate this issues too and get back to you because it has been greatly affected my standing in my community. How do I restore my credibility? I’d like to hear from you. “Good Will to those of Good Will” PEACE BE WITH YOU Virgilio Gozum Independent Distributor ________________________________________ From: David Hilton Sent: Tuesday, March 14, 2006 5:20 PM To: Virgilio Gozum Subject: XanGo LLC March 6, 2006 VIA ELECTRONIC MAIL Dear Mr. Atkinson: XanGo LLC appreciates you hard work and dedication to the company, product and business opportunity. This letter comes from the Distributor Education and Conduct Department whose responsibility is to assist distributors with their understanding and application of the company Policies and Procedures (P&P). Thank you for addressing your inquiry directly to us. We recognize that despite this policy and our efforts to minimize the proliferation of XanGo on eBay, there is still a large amount that occurs. We also understand that it creates an unfair business competition that is detrimental to those who are trying to conduct legitimate business. Please be assured that we are doing all we can to prevent the sale of XanGo on eBay and will continue to do so. With regards to selling below the suggested retail price, you are correct in stating that we have limitations to our ability to fix the price of the juice. The truth is that they are legal limitations imposed on more products than just XanGo. Nevertheless, we can and do strongly encourage all distributors to sell XanGo at the suggested retail price. Thank you again for your hard work. If you have any more questions you may address them directly to me. Sincerely, David Hilton, Liaison Distributor Education & Conduct Department XanGo, Urgent Notice: FTC Comment Deadline Monday July 17, 2006! From the Desk of Gordon Morton Dear XanGo Distributors, The July 17th deadline to submit your personal comments to the FTC is nearly upon us. I personally ask that each of you, if you have not already done so, take a few moments to write a thoughtful and considerate letter to the FTC regarding the impact this proposed rule would have on your business as an independent distributor. The FTC is reading and counting the letters received during the comment period. Your letter will make a difference--as will the lack of letters. The FTC is considering the potential impact of this rule by the number of people who make their voices heard. Please do not underestimate the power that you hold to help change this proposed rule! Below is the link to the comprehensive XanGo Distributor Guide that was previously sent out. This guide will provide you with all of the information you need about the proposed rule and how to send in your comments. Click here for XanGo Distributor Guide We ask that you please send a copy of your FTC letter to us as well, Thank you for being willing to support principles essential to our industry. Your action today will make a difference. Remember, the deadline to submit your comments is this coming Monday, July 17th. Sincerely, Gordon Morton co-founder and chief marketing officer XanGo, LLC