| Comment Number: | 522418-01051 |
| Received: | 6/6/2006 1:35:15 AM |
| Organization: | Herbalife International |
| Commenter: | Ed Dassie |
| State: | IL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
June 6, 2006 Federal Trade Commission/Office of the Secretary, Room H-135 (Annex W) Re: Business Opportunity Rule, R511993 600 Pennsylvania Avenue, NW Washington, DC 20580 RE: Business Opportunity Rule, R511993 Dear Sir/Madam, I am writing about the proposed New Business Opportunity Rule R511993. If it stays as written it will create significant to the network marketing industry and to my business. The proposed rule 7 day waiting period rule would require our business to not only have to assist the prospect in making the decision 1 time but a second and that would be a nightmare of organization and paperwork. The Earnings Disclosure: I support the disclosure and our company has a full disclosure on their website of average earnings. However, I do not wish to be forced to provide written substantiation because it is an excessive burden considering the investment of money to enter into the business is nominal. Plus the prospect’s results in our business are in no way directly related to my results. The rule also calls for the release of any information regarding prior litigation and civil or criminal legal actions involving misrepresentation, or unfair or deceptive practices, even if you were found innocent. People are suing for anything today. There would be a large burden to disclose every last suit that existed in a large company. Other large companies do not do that when applying for employment and they tell you what you will get paid there. Here a Suit may not have anything to do with what you can earn in our company but yet it can stop someone dead in their tracks before even getting started. It can eliminate a chance for success and financial freedom that they might have realized with the opportunity and most likely will not get anywhere else. The rule requiring 10 purchasers closest to you is good if references are requested and permission is given to pass on that information. However, providing references without control gives up the confidentiality that is needed for future success. Also with the Internet methods of advertising we sometimes do not even have a face to face relationship so even further putting the business in jeopardy. The network marketing industry is one of the few remaining opportunities for people to leverage their time and limited resources to earn additional income or to create a chance for financial freedom. Our Company Herbalife International is now publicly traded on the NYSE under the “HLF” Symbol. Network marketing is being used by major corporations including Citigroup, MCI and IBM. Top business management leaders and New York Times best-selling authors Robert Kiyosaki, Paul Zane Pilsner, and Steve Covey have endorsed network marketing. I got started in Herbalife Network Marketing business over 2 years ago now. And in that short period of time I have completely changed my financial situation for the better and this is something that almost 20 years of employment had never come close to doing. Today my wife and I are free from ever having jobs again. I’ve altered my health along with my wife and children with these products all for the better. I’ve also helped many others improve their health with the use of the Herbalife products. I’ve made long lasting friendships around the country and Canada and have become a leader in my organization. The change in my life has been incredible to say the least and this business opportunity had everything to do with it. This home based business allowed my wife and I to raise our own special needs child and not have to put him in a facility where he would not get the care a mother could provide. He also has a twin sister that again this business allows us to be able to raise and NO day care. The quality of life is so much better than working 2 jobs to live paycheck to paycheck. The Networking Marketing business provides opportunities to anyone who wants them and with the rules it’s just going to make it more difficult to help a person find the opportunity that just may help them change their lives. Network Marketing is a business where the desire has to outweigh just the statistics. People can succeed if they want to not because of my income, or the company’s background, or a 7 day waiting period. Give them an easy way to just get started and maybe just maybe they can change their lives. I understand and value the role of the FTC mission “to stand up for America’s free market process and for its consumers, who benefit from competitive markets in which truthful information flows.” However, I believe this proposed new rule exceeds what is necessary and needs significant modification. We live in a free market economy where people have the responsibility of making informed decisions based on best information. A better approach would be to provide consumers with objective criteria when analyzing a business opportunity and let an informed market proceed. I am in support of the disclosures should be made during the sales process without the requirement of a seven-day waiting period. Thank you for reviewing my comments. Ed and Lisa Dassie