| Comment Number: | 522418-00512 |
| Received: | 6/2/2006 11:43:54 AM |
| Organization: | Independent Shaklee Distributor |
| Commenter: | Jim Dunkin |
| State: | NE |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am writing this letter to express my strong opposition to the proposed Business Opportunity Rule R511993. I understand that it is the responsibility of the Federal Trade Commission to protect the public from "unfair and deceptive acts or practices," but the rule as proposed would make it very difficult for me to operate my business as a Shaklee Independent Distributor. (1) The seven day waiting period to enroll new distributors is most confusing and burdensome. Most people join for $19.95 to purchase products at wholesale. If they later wish to build a business, all they must do is supply Shaklee Corp. with their SS# or Tax ID. No additional kit, fee or application is required. Other consumer purchases (TVs, appliances, etc. which are much higher priced) do not require this seven day waiting period. The seven-day waiting period is unnecessary in that Shaklee Corporation already has a 90% buyback policy for products, including the Member Kit, purchased by a distributor within the last 2 years. (2) The proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. With IDENTY THEFT I am uncomfortable giving out the PERSONAL INFORMANTION of other Shaklee distributors, WITHOUT THEIR KNOWLEDGE OR CONSENT, TO STRANGERS! Not wise or even nice! (3) Providing the ten references also COULD DAMAGE THE BUSINESSES of numerous Shaklee distributors. Providing a list to a potential recruit, who may already be a distributor for a competing direct selling company, may be an invitation to solicit existing distributors for such other opportunity. (4) The ten reference requirement is an administrative burden. In order to obtain the list of 10 prior purchasers, I will need to provide Shaklee Corp. with the prospective distributor's address, and then wait to receive the list of the 10 nearest distributors who became distributors within the past 3 years. Each prospective recruit will need a customized disclosure statement. This will result in a delay far longer than 7 days before any potential recruit can sign an application. This GREATLY HINDERS THOSE WHO NEED TO EARN MONEY IMMEDIATELY. (5) The proposed rule calls for the release of any information regarding lawsuits that ALLEGE misrepresentation, or unfair or deceptive practices over a 10 year period. IT DOES NOT MATTER IF THE COMPANY WAS FOUND INNOCENT OR NOT LIABLE! This info should not have to be disclosed unless Shaklee has been found guilty or is liable. Otherwise, 50 year old companies such as Shaklee Corp. and their distributors would be placed at a disadvantage compared to start-up direct selling companies, which may not yet have experienced litigation, but which are far more likely to have legal issues surrounding their opportunities. (6) I have been a Shaklee distributor for more than 23 years. Originally, I became a Shaklee Distributor because I love the Company's nutritional/personal care/ household products and wanted to earn some additional income working from my home. Now, since we are retired, we very definitely depend upon income from our Shaklee business for financial support. (7) While I appreciate the work of the FTC to protect consumers, I believe this proposed new rule has MANY UNINTENDED CONSEQUENCES for direct sellers and that there are less burdensome alternatives available to the agency to achieve its goals. Thank you for your time in considering my comments