| Comment Number: | 522418-01315 |
| Received: | 6/7/2006 3:21:27 PM |
| Organization: | Scent-Sations Independent Distributor |
| Commenter: | Regina Hasman |
| 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 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 Scent-Sations Inc Independent Distributor. One of the most confusing and burdensome sections of the proposed rule is the seven-day waiting period to enroll new distributors.. If anyone wishes to become a Scent-Sations Distributor they simply fill out an application which for free with no additional requirements. The cost is less than many consumer purchases, from TVs to all manner of household appliances. None of those purchases at Walmart, or the grocery store, or even the car dealership require a seven-day waiting period. In addition, the seven-day waiting period is unnecessary in that Scent-Sations Inc already has a 90% buyback policy for products! The proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. There are many problems with this proposed requirement. In this day of identity theft, I am uncomfortable giving out the personal information of other Scent-Sations distributors, without their knowledge or consent, to strangers and have never gotten any of this information from places I purchased my TVs or household appliances either. I understand that those who sign up after the rule takes effect would be told in writing "If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers." I believe that this would dissuade new people from signing up as distributors as they are concerned not only about identity theft, but also about their privacy. People today are understandably reluctant to share their personal information with individuals they may never have met. The ten reference requirement also is an administrative burden. In order to obtain the list of 10 prior purchasers, I will need to provide Scent-Sations 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 result in a delay far longer than seven calendar days before any potential recruit can sign an application. In view of the fact that many people enter direct selling part-time to earn extra income for a specific goal, such as holiday purchases or a family vacation, or replacing income while on layoff, the long wait which the proposed rule will entail may make the goal unattainable. 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. It does not matter if the company was found innocent or not liable. 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 Scent-Sations Corporation, or its officers, directors or sales department employees, had been found guilty or liable. I have been a Scent-Sations Distributor for 3 month. Originally, I became a Scent-Sations Distributor because I love the Company's Candles and Personal Care products and wanted to earn some additional income working from home. Now, my four children and husband depend upon this extra income to save for college educations and more. It will allow me to work only part-time. Scent-Sations provides me with the opportunity to take advantage of what is great about being an American: the freedom to earn an income and still be with my family. While I appreciate the goal is to protect consumers, this proposed rule has unintended consequences for direct sellers when there are other options. Respectfully,