| Comment Number: | 522418-01436 |
| Received: | 6/8/2006 3:03:25 PM |
| Organization: | Shaklee Products Distributor |
| Commenter: | Daniel williams |
| State: | TN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am writing to express strong opposition to the proposed Business Opportunity Rule R511993. I understand that the Federal Trade Commission must 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 Shaklee Independent Distributor. A confusing and burdensome section of the proposed rule is the seven-day waiting period to enroll new distributors. Most of the people who sign a Shaklee application are consumers of the products. If they later wish to build a business, all they nust do is supplly Shaklee Corporation with their Social Security number or Tax Identification Number. No additional kit, fee or application is required. The Shaklee Member kit costs only $19.95. This is far less than most consumer purchases, from TVs to all manner of household appliances, none of which require a waiting period. The waiting period is also unnecessary in that Shaklee Corporation already has a 90% buyback policy for products, including the Member Kit, purchased by a distributor within the last two years.The proposed rule requires the disclosureof a minimum of 10 prior pruchers nearest to the prospective purchaser. In this day of identity theft, I am unconfortable giving out the personal information of other Shaklee distributors, without their knowledge or consent. 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." This would dissuade new people from signing up as distributors as they are concerned not only about identity theft, but also about their privacy. The 10 reference requirement is an administrative burden. This process would greatly hinder the flow of our business and delay new distributors from reaching specific goals for earning income. The proposed rule calls for the release of any information regarding lawsuits that alleged misrepresentation, or unfair or deceptive practices over a 10-year period. It does not matter if the company was found innocent or not liable. 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. Fifty-year old companies such as Shaklee would be at a disadvantage compared to start-up companies, which may not yet have experienced litigation but are far more likely to have legal issues surrounding their opportunities. My wife and I have been Shaklee Distributors for more than 33 years. Originally, we became a Shaklee Distributor because we wanted to use the company's nurtitional/personal care/household products. After receiving some very positive benefits we decided to sell some of the products to earn additional income working from home. Now we depend upon this extra income for our livelihood. Thank you for considerisng my comments. Sincerely, Daniel N. Williams