| Comment Number: | 522418-00193 |
| Received: | 6/1/2006 9:17:45 AM |
| Organization: | Shaklee Independant Distributor |
| Commenter: | Virginia Hodgkins |
| State: | ME |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
RE: Business Opportunity Rule, R511993 Dear Sir or Madam, I am writing to express my strong opposition to the proposed Business Opportunity Rule, R511993. I understand the FTC has a responsibility to protect the public from unfair and deceptive acts or practices, but the rule as proposed would make it very difficult for me to continue to operate my business as a Shaklee Independent Distributor. One of the most confusing and burdensome sections of the proposed rule is the 7-day waiting period to enroll new distributors. Most people who sign an application are doing so to purchase Shaklee products at a wholesale price - they intend only to consume the products. If they decide later to market the products, they must supply Shaklee Corporation with their SSN or TIN. No additional kit, fee or application is required. The Shaklee Membership Kit fee is $19.95. This is a nominal amount, compared to most other consumer purchases (electronics, household appliances, etc.), none of which require a 7-day waiting period. In addition, the 7-day waiting period is unnecessary because Shaklee Corporation already has a 90% buyback policy for products, including the Member Kit, if purchased by a distributor within the last 2 years. Other problem areas of the proposed bill are: disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser (would require giving out personal information to strangers); providing 10 references to a potential new distributor (could invite solicitation of existing distributors by a competing direct sales company if the potential distributor is already a distributor with another company) AND getting this list of 10 together would require a far longer delay than 7 calendar days and could interfere with the new recruits ability to attain some of the time-specific incentive goals Shaklee Corporation provides. Regarding releasing information of lawsuits alleging misrepresentation, unfair or deceptive practices in a 10-year period, it appears this would need to be done whether or not the company or its officers have been found guilty or liable. This does not seem fair...nor would it be fair for a 50-year old company like Shaklee Corporation to have to be compared to start-up direct selling companies who've established shorter histories in which to have developed legal issues surrounding their opportunities. I have been a Shaklee Distributor for 26 years. Originally I became involved with Shaklee after experiencing the efficacy of the products and to receive the Member's discounted pricing. I later decided to market the products to my relatives and friends to earn extra income to help with the bills while staying at home to raise our children. Please know that I believe the proposed new rule has many unintended consequences to direct sellers and that there are likely less burdensome alternatives/solutions available to the agency to achieve its goals. Thank you for considering my comments. Sincerely, Virginia L. Hodgkins