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May20
New FTC Rule May Threaten Network Marketing
A new rule proposed by the FTC would greatly affect the Network Marketing industry.

red-tape.gifThe proposed rule would implement the following:

1.  A 2 step sign up process involving a 7-day waiting period.
2.  Average earnings disclosure.
3.  Disclosure of previous litigation.
4.  Providing of references
5. Cancellation and refund policy.

Frankly, I have no problem with earnings, litigation and cancellation/refund policy disclosures but requiring a 7-day waiting period for a business that many times requires a start up fee of $20 (more or less) is excessive, as is requiring 10 references of  purchases closest to you in geography. Red tape and paperwork are not the way to clean up the Network Marketing industry.

The public comment period on these new rule changes  ends on June 16th, 2006. This link will give you further details and tell you how to respond with your concerns.

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