Comment Number: 522418-01804
Received: 6/12/2006 12:18:41 AM
Organization:
Commenter: Heidi Jenkins
State: IL
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

Heidi Jenkins,  June 11, 2006 Dear Sir or Madam: I am writing this letter about the proposed Busi. Oppor. Rule R511993. I am concerned of the impact it could have on my business as an Indep. Consultant with The Pampered Chef. 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 The Pampered Chef products. I have been an Indep. Consultant for 2 ½ years. I have three small children. Originally, I became a consultant because I wanted to be able to get out of the house a few nights a month and be able to earn a little extra money when I did it. I had been using the products for over 15 years and knew the products were exceptional. My long term goal is to grow my business so that when all of my kids are in school full-time I will have a full time salary but still be able to be there for my children to help them with their homework and make every softball game, choir concert or gymnastics meet. One of the most burdensome sections of the proposed rule is the seven-day waiting period to enroll new consultants. The Pampered Chef’s sales kit only costs $90 (if they host a show they can get up to $40 off of that price). People buy more expensive items and they do not have to wait seven days. I think this seven-day waiting period is unnecessary. There is a lot of information available if people want it. When I was considering joining The Pampered Chef I did a lot of homework researching the company before I ever spoke to a consultant. By the time I spoke with a consultant I only had a few questions that were unanswered and I was ready and very excited to get started. If I would have had to wait seven days at that point I would have not only been very disappointed but I would have started to doubt the company (unfairly). 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 The Pampered Chef is found guilty. 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 to strangers. 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 The Pampered Chef 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. Also, someone could say they are interested in our opportunity, get the list of references and use it to for their own purposes including, but not limited to, trying to lure them over to their company. 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 other ways to achieve your goals. Thank you for your time in considering my comments. Respectfully, Heidi Jenkins