|Received:||6/1/2006 5:56:34 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I appreciate your desire to protect the public from unfair and deceptive acts or practices. However, I’m very concerned about the Business Opportunity Rule, R511993, and I believe that in its present form, this ruling would make it very difficult for me to continue to do business. I became a Weekenders’ Fashion Coordinator in 1992 (and a manager in 1994) because I believed in the products and wanted to earn some additional money. Because I “did my homework” and signed on with a reputable company, I’ve enjoyed extra income that my family has come to rely on to supplement our budget, and this ruling could severely change that situation. One of the most confusing and burdensome sections is the 7-day waiting period to enroll new Coordinators. Not only does this give a negative impression, but also it would be extremely burdensome for all parties. Weekenders Sample Pak options range from $150 - 488. People make purchases much larger than this on a regular basis, yet certainly aren’t required to wait 7 days! In addition, Weekenders eliminates the need for this rule by offering a 12-month 90% buyback policy for unused products purchased by a salesperson. The proposed ruling also calls for the release of any information regarding lawsuits involving misrepresentation, or unfair or deceptive practices, regardless of the findings. Today, any person/company can be sued for almost anything. It simply does not make sense that I would have to disclose these lawsuits, unless Weekenders is had been found guilty. Otherwise, Weekenders and I are put in an unfair position, even though we have done nothing wrong. Finally, the proposed rule requires the disclosure of a minimum of 10 prior Coordinators. I am glad to provide references, but in this day of identity theft, I will not ask a customer if I can share her personal information with strangers. I also think the following sentence, required by the proposed rule, will prevent many people from joining the direct selling profession: “If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers.” If I were considering joining a company and heard this, I would be intimidated, annoyed and “turned off” – not things that support good business! I’m sure you’re aware of the role that the Direct Selling Association plays in upholding the honor, excellence and integrity of the direct selling profession – why not work thru that organization, rather than making cumbersome, ineffective rules?