Unresolved Franchise Regulatory Issues
Shopping Product ReviewsMost in the franchise industry are too afraid of the Federal Trade Commission to speak out against its abuses of power. Most lawyers kiss their butts to make sure they’re not out of the loop, making sure they get positive feedback on areas of the law when they ask for an interpretation. Attorneys in the franchise industry are careful to speak to regulators to help position their clients, and often have glowing comments, butt-kissing letters, and extremely warm words for the efforts of franchise franchise groups. FTC. But unfortunately, there is a completely dark side to the Consumer Division of the Federal Trade Commission, which houses the franchise group there.
Few citizens realize that it is a complete fraud. Absolutely, most franchise attorneys and most franchisors do not have the experience that I have in dealing with their lies to understand the ramifications on our economy. Industry attorneys are either lying in their rulemaking comments and letters or are dead wrong in their perceptions of what actually goes on at the FTC.
If one digs deep enough into the inner workings of the FTC Franchise Groups, there is more than enough documented evidence of their fraud against consumers to make any free man vomit. There is no redeeming quality in their franchising efforts. They need to cut their budget. Steve Toporoff, who has run the franchise group for decades, should be fired and lose his pension and his staff should also be fired. Anyone who ever worked for him should be fired. The dismal performance of such an important sector of our economy is unexpected. The bombast is unacceptable and the quality of work is some of the worst many have seen. The sooner he and his staff are laid off, the better for the American economy and franchises in general, which are a big part of it. There is no reality-based thinking in the FTC’s Division of Consumer Franchising. The new rules hurt smaller franchises and protect larger ones to the detriment of free markets that create artificial barriers to entry and reduce consumer choice while raising prices for the very consumers they claim to protect.
http://www.ftc.gov/os/comments/franrulestaffrpt/OL-100001.pdf
This is only part of what is wrong with the Federal Trade Commission. Every action they take stifles free enterprise and hurts the consumer. One could write a thousand pages of examples. For those who are lawyers in the industry, it behooves them to be cordial and gentlemanly as in their comments and letters and of course speak the party line, of course I don’t condemn anyone for doing what is best for them. But I totally disagree with the lawyer’s comments and they know or should have known the truth if they really follow the industry.
Is the FTC rule after 15 years of nothing now going through its final changes? Better late than never you could say. Unfortunately, the FTC is incompetent and the biggest waste of taxpayer money I have witnessed in my travels to every city in the US with over ten thousand people and having franchised businesses in 23 states and four countries. The FTC is a fraud, completely, utterly, and there can be no debate.
The do not call list is a sham. It allows calling some business models and restricts others, not real, PR Fluff. Corporate mergers, no, they also fall there. The Federal Trade Commission often delays mergers and that costs people jobs and investors billions a year in their portfolios. The Federal Trade Commission can’t stop SPAM, identity theft, or anything else, always passing the costs on to businesses and then, of course, to investors and consumers. Making more rules, which they don’t even follow themselves, must be nice? A reality check is needed, that agency needs their budget cut by a third immediately, they should all be fired.
A lawyer in an interview said:
“I remember having a breakfast conversation with one of the FTC commissioners a few years ago, asking him if he saw any major issues with franchising. After thinking for a moment, he said no, that potential issues related to franchising with overlapping regulations by both states and federals.
So, to me, the FTC has done a good job of enacting and revising the Franchise Rule over the years, particularly since there are other areas that they’re much more concerned about, like Bus. Op. fraud, consumer financial privacy , National Registry Do Not Call, regulation of Veracity in Advertising, inspection of corporate mergers, etc.
We must not allow our focus on franchising to become parochial and forget that our field is only a small part of the big picture, at least from the point of view of the FTC and probably from the point of view of regulators in general. It’s probably a tribute to the relatively good health of franchises that we don’t get more regulatory attention than we do!”
I don’t agree on all your points, this law firm is totally wrong. You can meet with as many commissioners as you want, they have no control over their vengeful base who have never had to write a paycheck. Leaving LA LA Land academy or Washington DC gay bars the night before. Deny it. Even if you have 5 good and decent Presidentially Appointed Superstars as commissioners that are somewhat grounded in reality, what’s the point? The Federal Trade Commission attacks corporations, they destroy lives, jobs, tax base, stock portfolios, pensions, and cause offshoring, trade deficits, over-regulation, and underperforming economies.
In my opinion, this agency contributes more to the fight against free enterprise than any other agency in human history. Look at the havoc caused by American companies? Filing false documents in court, making things up as you go, cajoling lies into statements; not one shred of help to the American consumer that they claim is reality. Is it a bunch of contrived nonsense?
How can anyone, including a ‘truth-telling lawyer’, honestly believe that they are helping America? That’s silly. I’m not just talking about “Franchises”, which accounts for 1/3 of every dollar spent by consumers and represents 400,000 businesses. I’m talking all the way. Its economists are linear thinkers, its lawyers can’t get real jobs, and its attacks on the American economy are worse than anything Osama bin Laden could dream of.
I appreciate franchise attorneys who want to cover themselves to make their law firms stand out. I appreciate that these lawyers pretend to be on the right track, but living a lie that is so blatantly obvious is unbecoming even for a lawyer. The FTC’s hypocrisy is baffling, to say the least. Whether or not; “Lawyers think” that the FTC is doing a good job is irrelevant, because it isn’t. The FTC is a fraud against the best this country has to offer, as well as freedom and free enterprise as we know it. That is the truth, you have to know it.
I ask for a reduction of the Federal Trade Commission budget by 1/3 immediately and a reduction of at least that amount the following year. Also staff reduction, elimination of the statute at the head and establishment of its offices in Newark, NJ; Because that’s what they’d turn this country into if they could.
FTC doing a good job for America; What are the lawyers thinking? You don’t really believe that, do you? Should the Department of Justice be ashamed of that division? Oh. Truth, Justice and the American Way at the FTC, by no means, does not exist. Unfortunately everything is a lie, there is no justice; just bombast, press releases for 7,500 news organizations, a few press conferences, and bragging rights. It’s really too bad, because their mission statement makes one feel good, safe, and proud to be an American. If only it were real, wouldn’t that be something for the United States of America? Think about it.