FTC’S WET BLANKET RULE OF 2006 - PLEASE HELP EXTINGUISH

NSP MEMBERS AND TEACHERS OF HEALTH AND NUTRITION... THIS IS NOT A HOAX AND MUST BE TAKEN SERIOUSLY IF YOU PLAN ON BEING IN BUSINESS NEXT YEAR.


Dear Health Enthusiast:

FTC’S WET BLANKET RULE OF 2006
By Clinton Ray Miller

On April 12, 2006 the Federal Trade Commission (FTC) published an Orwellian 42 page, extremely small print.“Notice of proposed rulemaking” in the Federal Register. (see pages 19054 to 19096).

The FTC misleadingly labeled its proposed rule the “Business Opportunity Rule.” It is a massive misnomer.

It should be called the “Discourage all Multilevel Business Opportunities Rule” or

“The Anti-Multilevel Business Rule” or

“Throttle all Multilevel Business rule” or the

“Smother Multilevel Businesses with a Burden of Paperwork rule”

Or “the Wet Blanket Rule.”

Webster’s Random House Large Print Dictionary defines “wet blanket” as “one that dampens enthusiasm.” This definition really fits the FTC’s proposed rule. It may have been inadvertently or deliberately designed to dampen enthusiasm at the point of sale of any multilevel business opportunity.

The FTC claims it is only proposing its new rule to protect consumers from fraud. However the rule expands its 1979 franchise rule to include several million multilevel individuals for the first time.

The Seven Day “Smother the Flame” Rule

The following items are only a portion of a summary of the key provisions of the FTC’s proposed rule as reported by Emord and Associates of Washington D. C.

THE 7 DAY RULE

“The FTC’s proposed new rule will make it unlawful for any person who presents a business opportunity to another person to do so without making specific affirmative disclosures on a federal form to every prospect seven days before consummation of a deal.”

While it may have made good sense to require a 7 or 10 day waiting period before a person invested and risked thousands or millions of dollars in a Holiday Inn, McDonalds or Sports franchise, it makes very little sense to require a very small multi-level business person to have a mandatory 7 day waiting period before signing up another distributor if the cost is usually much less than $500.

It makes even less sense if new distributors can get a full refund.

It would be a far more reasonable proposal if the FTC’s rule exempted all business opportunities costing less than $500.

The FTC would have a hard time to defend a rule that required all persons buying furniture, appliances or automobiles costing hundreds or thousands of dollars to wait 7 days. Yet, without blushing, the FTC now proposes a rule that would require all persons to wait 7 days before signing up as multilevel distributors. The cost is usually far less than $500.

Federal Prosecution for those who fail to fill out a form properly

The rule proposes to vigorously prosecute all who fail to properly fill out the multitude of required forms. Under the proposal rule. Thousands could be prosecuted who have never committed fraud, but simply failed to fill out the mandated forms, or retain them for 3 years.

For example:

The rule applies to all multi-level persons who, expressly or by implication, orally or in writing, make an “earnings claim”. “Earning claims include, but are not limited to: (a) any chart, table, or mathematical calculation that demonstrates possible results based on a combination of variables” and (b) any statement to a purchaser that could be reasonably be viewed as inferring that he or she will earn a minimum level of income…”

(1) An Earning Claims Statement must be given every prospective purchaser. The claim must be written on a federal disclosure form. It must include (a) the name of the person making the claim (b) the earnings claim (c) the beginning and ending dates when the earnings were achieved (d) and the number and percentage of all purchasers who achieved at least the stated level of earnings.

(2) Legal Actions: The seller must disclose all legal charges that have been brought against him or her “… in the 10 years immediately preceding the date the business opportunity is offered.”

(3) Cancellation or Refund Requests: The seller must disclose the total number of oral and written cancellation requests received during the 2 prior years.

(4) References: The seller must disclose the name, addresses and phone numbers of all purchasers of the business opportunity within the last 3 years who are located nearest to the prospective purchaser’s location. Alternatively, a list may be supplied showing all purchasers nationwide within the last three years.

(5) Updates. All information on the form disclosed by the seller must be updated quarterly to reflect any changes. t Updates must be supplied to the purchasers monthly. (Think of the mountains of paperwork!)

(6) Record Retention: Every person who presents a business opportunity to another must retain (1) signed and dated copies of the business opportunity forms that are given to prospects; (2) every update; (3) every executed contact; (4) every cancellation or refund request; and (4) all substantiation relied upon for a period of three years.

PLEASE TAKE A MINUTE TO PRINT, SIGN AND FAX THIS FORM TO THE HONORABLE CLIFF STEARNS - CHAIRMAN, SUBCOMMITTEE ON COMMERCE, TRADE AND CONSUMER PROTECTION
(the fax number is included on the form).

http://herbsplus4health.com/saveUSfromFTCwetblanketRule.htm

WE ONLY HAVE UNTIL JUNE 16TH TO DO THIS SO DO NOT WAIT!

Thank you,

Clinton Ray Miller
Health Freedom Activist
http://herbsplus4health.blogspot.com/2006/03/who-is-fighting-for-your-natural.html




More information about the FTC’s Business Opportunity Rule R511993:

PLEASE GET INVOLVED AND DO NOT LET YOUR FREEDOM TO HELP OTHERS LEARN ABOUT HEALTH AND NUTRITION BE TAKEN AWAY FROM YOU.

http://business.cch.com/franlaw/news/04-21c-06.asp

http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/06-3395.htm

http://herbsplus4health.com/saveUSfromFTCwetblanketRule.htm (print form)