| Comment Number: | 522418-01602 |
| Received: | 6/9/2006 2:05:58 PM |
| Organization: | The Pampered Chef |
| Commenter: | Holly Stephens |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
June 9, 2006 Business Opportunity Rule, Matter No. R511993 To Whom It May Concern: PLEASE, PLEASE, PLEASE do not make our wonderful industry harder to become involved in. I know there are unscrupulous people in our industry, just like in yours. Do not punish everyone for the sins of a very few! As a Direct Seller for The Pampered Chef for almost 13 years, I have helped society. How? I have been able to be a stay at home mom, while paying for the mortgage, bills and putting money away for my children’s education. It is very evident that my children were not raised in a day care. They care contributing members of society, and they are only 13 and 15! With my business, I have kept my family off welfare when my husband lost his job. We have wanted to , but never did, declare bankruptcy. We pay our debts with the help of my business. They are growing up with a sense of FAMILY, values and priority on the home. One of the most confusing and burdensome sections of the proposed rule is the seven-day waiting period to enroll new consultants. If anyone wishes to become a Pampered Chef Consultant they simply fill out an application, pay $90 and get over $350 worth of products and paperwork. This is far less than most consumer purchases, from TVs to household appliances, none of which require a seven-day waiting period. The seven-day waiting period is unnecessary in that The Pampered Chef already has a buyback policy for products if someone decides this isn’t for them! 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 Pampered Chef consultants, with or without their knowledge or consent, to strangers. 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 consultants 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. Providing the ten references also could damage the businesses of numerous Pampered Chef consultants. Lower ranking consultants often are involved in more than one direct selling company. Providing a list to a potential recruit, who may already be a consultant for a competing direct selling company, may be an invitation to solicit existing consultants for such other opportunity. The ten reference requirement is an administrative burden. In order to obtain the list of 10 prior purchasers, I will need to provide The Pampered Chef Home Office with the prospective consultant's address, and then wait to receive the list of the 10 nearest consultants who became consultants 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; the long wait 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 The Pampered Chef Home Office, or its officers, directors or sales department employees, had been found guilty or liable. I do not get any of this information when I go to a store and buy something. They do not provide with a list of salespeople or customers prior to my coming into the store. Why should we be any different? Thank you for considering my comments. Sincerely, Holly Stephens Ind. Advanced Director with The Pampered Chef