Monday, July 31, 2006

Phoenix Based "Dream Team" Supports FTC Proposal

Will the average Network Marketer even notice the new FTC rule if its passed?
Consider the following statement which comes from a public filing with the SEC:

The United States Federal Trade Commission released a proposed New Business Opportunity Rule on April 5, 2006. The proposed rule would require pre-sale disclosures for all business opportunities, which might include network marketing compensation plans. The New Business Opportunity Rule is currently only a proposed rule. If implemented at all, the rule ultimately may not be implemented in a form that applies to network marketing compensation plans, or may change significantly before it is implemented. If the proposed rule were adopted as currently proposed, it might require MLM Company to change some of its current practices regarding pre-sale disclosures.

Now does that sound so bad? And who would be against pre-sale disclosure? I even ran across one team in Phoenix that fully backing the proposal. Heres what they had to say:

“For years, almost half a century, this industry, especially MLM and Network Marketing companies have gone almost unchecked while consumers have been lied to, misrepresented and falsely lead to believe it’s ‘easy’ to make money in a home-based business. The techniques, like making a list of friends and family, commonly taught in this business don’t work. In fact, the failure rate is greater than 90%”, says Gino Niccoli co-founder of the Dream Team. The proposed rule would require full disclosure of how much money a person is making, what the actual odds of success are with a particular company, a ‘cool down’ period before someone can sign up, etc. “These rules have applied in risky markets for years. The investment industry would never tolerate some of the claims being made by some of these home business opportunity companies. The FTC passed the Telemarketing Sales Rule in 1996 for that industry and it has literally changed that business. “The biggest change in those other industries that we believe the FTC is trying to make happen here is that the individual be held responsible for their actions not just the company and this will have a sweeping effect on this industry that we support 100%”, says Mr. Niccoli.

PRN Wire: �Against Industry Concerns, The Dream Team Supports FTC Proposed Business Opportunity Rule��

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