Comment Number: 522418-00797
Received: 6/5/2006 12:37:06 AM
Organization:
Commenter: Ted Morrell
State: NJ
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

Dear Sir or Madam: I'm very concerned about the proposed Business Opportunity Rule $511993. In its present form, I believe that it could prevent me from continuing as an Independent Sunrider Distributor. I recognize the FTC's part of responsibilities is to protect the public from "unfair & deceptive acts or practices,” but some of the sections in the proposed ruling will make it next to impossible for me to sell Sunrider products. The seven day waiting period to enroll new distributors is among the most confusing & burdensome sections of the ruling. The Sunrider Starter Pack only costs $140 & is NOT a mandatory purchase in order for a person to become an Independent Sunrider Distributor. People buy items that cost much more than ours and they do not have to wait seven days. This waiting period gives people the impression that there might be something wrong with the plan. Also Sunrider already has a generous 60 day return policy for existing Distributors in place that is applicable to all products, including the Sunrider Starter Pack; therefore I believe that this waiting period is unneccessary.Sunrider also has a 90% buyback policy for former Distributors applicable to all products purchased within the last twelve months. Another problem with the seven day waiting period is the administrative burden of keeping very detailed records from when I first speak to someone about Sunrider & then having to send numerous reports to Sunrider Headquarters. Your proposed ruling calling for release of ANY information regarding lawsuits involving misrepresentation, or unfair or deceptive practices does not take into play if the company was found innocent. In today’s world anyone or any company can be sued for almost anything.Why would I have to disclose any lawsuit unless Sunrider was found guilty! This would put not only Sunrider but me in an unfair advantage even though NOTHING has been done wrong. Finally the proposed ruling requiring the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser is scary in this day and age of identity theft. I would not give out personal information of individuals without their approval! Giving away this information could damage business relationships 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 would need to send the address of the prospective purchaser to Sunrider headquarters and wait for the list. I also think the following sentence required by proposed rule will prevent many from wanting to sign up as salespeople:” IF YOU BUY A BUSINESS OPPORTUNITY FROM THE SELLER, YOUR CONTACT INFORMATIN CAN BE DISCLOSED IN THE FUTURE TO OTHER BUYERS." There is great concern about privacy & identity theft & people are reluctant to share their personal information with individuals they may have never met. I have been a Sunrider Distributor for 11 years, originally because my family liked their products. During this time my wife & I have successfully increased our family income to where we could retire from the Janitorial business we owned for over 23 yrs. This business shift has given us the security of residual income to supplement our Social Security benefits. I appreciate the work of the FTC to protect consumers, but believe the proposed new rule has many unintended consequences & that there are less burdensome alternatives available in achieving its goals. Thank you for your time in considering my comments. Sincerely, Ted Morrell