| Comment Number: | 522418-01397 |
| Received: | 6/8/2006 5:08:44 AM |
| Organization: | Candles Galore Kaybella |
| Commenter: | Jaunita Dove |
| State: | MI |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Re: Business Opportunity Rule, R511993 Dear Sir or Madam: I am writing this letter to express strong opposition to the proposed Business Opportunity Rule R511993. I understand that it is the responsibility of the Federal Trade Commission to protect 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 parts of the proposed rule is the 7-day waiting period to enroll new distributors. If anyone wishes to become a Scent-Sations Distributor they simply fill out an application which is free. There is no additional kit or fee required. This is far less than most, consumer purchases of TVs to household appliances, none of which require a 7-day waiting period. In addition, the 7-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 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 personal information of other Scent-Sations distributors, without their knowledge or consent, to strangers. I understand those who sign up after the rule takes effect will 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. They are concerned not only about identy theft, but also about their privacy. People today are understandably reluctant to share their personal information with people they may never have met. Providing the 10 references also could damage the businesses of numerous Scent-Sations distributors. Lower ranking distributors often are involved in more than one direct selling company. 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 other opportunities. The 10 reference requirement also is an administrative burden. In order to obtain the list of 10 prior purchasers, I will need to provide Scent-Sations Corp with the prospective distributor's address, then wait to receive the list of 10 nearest distributors who became distributors within 3 years. Each prospective recruit will need a customized disclosure statement. This will result in a delay far longer than 7 calendar days before any potential recruit can sign an application. Many people enter direct selling part-time to earn extra income for a specific goal, such as holiday purchases or a family vacation, 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, unfair or deceptive practices over a 10-year period. It doesn't matter if the company was found innocent or not liable. Today, most all business lawsuits contain claims of misrepresentation or unfair competition. It doesn't make sense to me I would have to disclose these lawsuits unless Scent-Sations Corp, or its officers, directors or sales department employees, had been found guilty or liable. I have been a Scent-Sations Distributor only a couple of months. I became a distributor because I love the Company's Candles and personal care products and wanted to earn some extra income working from home. My spouse and I need this extra income to supplement our budget. I appreciate the work of the FTC to protect consumers, I believe this proposed new rule has many unintended consequences for direct sellers and there are less burdensome alternatives available to the agency to achieve its goals. Thank you for your time and considering my comments. Sincerely, Jaunita Dove