| Comment Number: | 522418-01709 |
| Received: | 6/10/2006 2:58:47 PM |
| Organization: | Home and Garden Party |
| Commenter: | carol dwyer |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am writing this letter because I am concerned about the proposed Business Opportunity Rule R511993. I believe that in its present form, it could prevent me from continuing as a HOME AND GARDEN PARTY DESIGNER. I understand that part of the FTC’s responsibilities is to protect the public from “unfair and deceptive acts or practices,” yet some of the sections in the proposed rule will make it very difficult, if not impossible, for me to sell our products. I have been a designer with Home and Garden Party for more than 5 years. Originally, I became a designer in my company because I felt the products were exceptional and I wanted to earn some additional income. I began so I could have flexibility with my children and to return to college to earn my degree. I have finished school and still enjoy my business. My direct selling income now helps support my sons in college. The future of my family is dependent on the stability of the direct selling industry. One of the most confusing and burdensome sections of the proposed rule is the seven-day waiting period to enroll new Designers. Home and Garden Party's sales kit only costs $99. People buy TVs, cars, and other items that cost much more and they do not have to wait seven days. This waiting period gives the impression that there might be something wrong with the company or the compensation plan. I also think this seven-day waiting period is unnecessary, because Home and Garden Party already has a buyback policy for the sales kits purchased by a salesperson within the last twelve months. Under this waiting period requirement, I will need to keep very detailed records when I first speak to someone about Home and Garden Party and will then need to send in many reports to my company headquarters. The proposed rule also calls for the release of any information regarding lawsuits involving misrepresentation, or unfair or deceptive practices. It does not matter if the company was found innocent. Today, anyone or any company can be sued for almost anything. It does not make sense to me that I would have to disclose these lawsuits unless Home and Garden Party is found guilty. Other companies could use this rule unethically in their recruitment of others. Otherwise, Home and Garden Party and I are put at an unfair advantage even though we have done nothing wrong. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective designer. I am glad to provide references, but in this day of identity theft, I am very uncomfortable giving out the personal information of individuals (without their approval) to strangers. Also, giving away this information could damage the business relationship of the references who may be involved in other companies or businesses including those of competitors. In order to get the list of the 10 prior purchasers, I will need to send the address of the prospective purchaser to Home and Garden Party headquarters and then wait for the list. I also think the following sentence required by the proposed rule will prevent many people from wanting to sign up as a salesperson - “If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers.” People are very concerned about their privacy and identity theft. They will be reluctant to share their personal information with individuals they may have never met. There are many types of companies that list themselves has a business opportunity. Many of the problems arise from 'get rich quick' schemes that have propagated and flourished on the internet. Please do not lump Home and Garden Party in to these same types of companies. I appreciate the work that the FTC does to protect consumers, yet I believe this proposed new rule has many unintended consequences and there are less burdensome alternatives available to achieving your goal. Thank you, Carol Dwyer Designer