| Comment Number: | 522418-00408 |
| Received: | 6/1/2006 8:25:46 PM |
| Organization: | |
| Commenter: | Jessica Lemmon |
| State: | OH |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Dear Sir or Madam: I am writing this letter because I am concerned about the proposed Business Opportunity Rule R511993. I believe that in its present form, it could prevent me from continuing as a PartyLite Candle Leader and Consultant. I understand that part of the FTC’s responsibilities is to protect the public from “unfair and deceptive acts or practices,” yet some of the sections in the proposed rule will make it very difficult, if not impossible, for me to sell PartyLite products. I have been a PartyLite Candle Consultant for more than 2 years. Originally, I became a consultant in my company because I wanted to make some extra money to supplement my full time job. Now, I enjoy the freedom to work my PartyLite business full time - because of the financial support it has provided me. The future of my livelihood and my husband's is dependent on the stability of the direct selling industry. One of the most confusing and burdensome sections of the proposed rule is the seven-day waiting period to enroll new consultants - the sales kit in PartyLite is absolutely free with the new consultant holding a $350 show. The only money she will pay is if she decides to purchase the specials or 1/2 price offers earned by her having a show. People invest in all kinds of things that do cost money: TVs, cars, and other items and they do not have to wait seven days. This waiting period gives the impression that there might be something wrong with the company or the compensation plan. I also think this seven-day waiting period is unnecessary, because the start up cost is absolutely free. Under this waiting period requirement, I will need to keep very detailed records when I first speak to someone about PartyLite and will then need to send in many reports to my company headquarters. Also, the disclosure of a list of consultants who have discontinued doing PartyLite could be easily misconstrued. I have had consultants come and go; some people just don't have time, others just take the free starter kit and run. This is not an accurate representation of the company. The proposed rule also calls for the release of any information regarding lawsuits involving misrepresentation, or unfair or deceptive practices. It does not matter if the company was found innocent. Anyone or any company can be sued for almost anything. It does not make sense to me that I would have to disclose these lawsuits unless PartyLite Gifts, Inc. is found guilty. Otherwise, PartyLite and I are put at an unfair advantage even though PartyLite has done nothing wrong. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. I am glad to provide references, but in this day of identity theft, I am very uncomfortable giving out the personal information of individuals (without their approval) to strangers. Also, giving away this information could damage the business relationship of the references who may be involved in other companies or businesses including those of competitors. In order to get the list of the 10 prior purchasers, I will need to send the address of the prospective purchaser to PartyLite headquarters and then wait for the list. I also think the following sentence required by the proposed rule will prevent many people from wanting to sign up as a salesperson - “If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers.” People are very concerned about their privacy and identity theft. They will be reluctant to share their personal information with individuals they may have never met. I appreciate the work that the FTC does to protect consumers, yet I believe this proposed new rule has many unintended consequences and there are less burdensome alternatives available to achieving your goals. Thank you for your time in considering my comments. Respectfully, Jessica Lemmon OHIO