|Received:||6/2/2006 3:02:35 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:Dear Sir or Madam: I am writing this letter to oppose the proposed Business Opportunity Rule R511993. I realize the need to protect the public from "unfair and deceptive acts or practices," but the rule as proposed would be a tremendous burden for me to run my business as a Shaklee Independent Distributor. I definitely oppose the proposed rule regarding the seven-day waiting period to enroll new distributors. The majority of people I deal with sign an application just to get their products at a discount. Should they decide to build a business at a later date all they have to do is give Shaklee Corporation their Social Security Number or Tax Identification Number. There is no additional fee required. The original Shaklee Member Kit only cost $19.95. Shaklee Corporation has a 90% buyback policy for products, including the Member Kit, purchsed by a distributor within the last two years which makes the seven day waiting period unnecessary. The rule that requires for the names of 10 prior purchasers nearest to the prospective purchaser will really create problems.With identity theft on the rampage I would be scared to give out personal information of other Shaklee distributors without their consent. When a prospect looks into the business opportunity and we tell them their contact information can be given out to other buyers, invading their privacy and making them vulnerable for identify theft this could very well discourage them from getting involved. Shaklee Distributors could have their business damaged by giving out 10 references to lower rnaking distributors who may already be a distributor for a competing direct selling company. This could be an invitation to solicit existing distributors for such other opportunity. In order to obtain the list of 10 prior purchasers, I will need to provide Shaklee Corporation with the prospective distributor's address, and then wait to receive the list of the 10 nearest distributors who became distributors within the past three years. Each prospective recruit will need a customized disclosure statement. This will take alot longer than seven days before any potential recruit can sign an application. The proposed rule calls for the release of any information regarding lawsuits that allege misrepresentation, or unfair or deceptive practices over a ten-year period. Today almost all business lawsuits contain claims of misrepresentation or unfair competition. It does not make sense to me that I would have to disclose these lawsuits unless Shaklee Corporation, or its officers, directors or sales department employees, had been found guilty or liable. Otherwise, fifty-year old companies such as Shaklee 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. When I started this business 30 years ago it was really by accident, being the mother of 8 children I didn't need another thing to do. My stress and our family health challenges needed help. After using the products for a short time our health improved and because of our results my friends wanted the same benefits. So I found a way to earn extra money without leaving my home and having somone else raise my children. Now my husband is retired and we depend upon this extra income to supplement our budget. I agree we need the FTC to protect consumers, however I think the proposed rules need adjusting to be more friendly to direct sellers.