| Comment Number: | 522418-01717 |
| Received: | 6/10/2006 5:46:44 PM |
| Organization: | Mary Kay |
| Commenter: | Ashley Tibbetts |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| Attachment: | 522418-01717.pdf Download Adobe Reader |
Comments:
Date June 10, 2006 Dear Sir or Madam: 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 Mary Kay Independent Sales Director. 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 ridiculously difficult, for me to build a successful Mary Kay business. I have been a Mary Kay Independent Beauty Consultant for more than 4 years. Originally, I became a consultant only to see what I could get out of it, but it has become so much more than a job or an income. Mary Kay has given me the opportunity to live my life in a way that most only dream of. I have been able to be there for my family in incredible ways. I have been there to nurse my grandmother back to health, working in my church, volunteer with local children’s groups and make an impact on so many others in a way that would be impossible if I had took work a corporate job outside the home to make the same income. I love Mary Kay and what the company stands for; the products were exceptional and the ethics of Mary Kay Ash have been passed down unsullied for over 43 years. This direct selling experience has actually taught me what integrity and work ethic are and shown me the way that the future can be changed because of opportunities like this that allow you so much growth opportunity and such a fast track to self discovery. The future and welfare of my community both financially and ethically is dependent on the stability of the direct selling industry and the ability for Mary Kay Cosmetics to continue to teach what it means to live and work with honor.. One of the most confusing and burdensome sections of the proposed rule is the seven-day waiting period to enroll new consultants the sales kit only costs $100.00. 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 Mary Kay already has a 90% buyback policy for all products including 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 Mary Kay 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 Mary Kay is found guilty. Otherwise, Mary Kay and I are put at an unfair advantage even though Mary Kay has done nothing wrong. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. 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 Mary Kay 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. 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 goals. Thank you for your time in considering my comments. Respectfully, Ashley Tibbetts