| Comment Number: | 522418-01996 |
| Received: | 6/13/2006 11:58:47 AM |
| Organization: | Midnight Magic Parties |
| Commenter: | Michelle Rensberger |
| State: | FL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
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 direct selling consultant. 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 continue to sell products to consumers and to be an American business owner. While I have only been a consultant for just over a year, I have increased my income and my income potential drastically. I am now able to be a contributing and successful member of society. One of the most confusing and burdensome sections of the proposed rule is the seven-day waiting period to enroll new consultants. This waiting period gives the impression that there might be something wrong with the company or the compensation plan. Under this waiting period requirement, I will need to keep very detailed records when I first speak to someone about our company 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 a ruling was found guilty. Otherwise I are put at an unfair advantage even though the company 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 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. A large number of direct sellers that I have come in contact with, have lost their jobs to oversees or immigrant workers. The direct selling industry has put these hardworking Americans, myself included, back on their feet and able to provide for their families. What will happen to the many Americans who will come looking, in the near future, at legitimate direct selling businesses with all the confusing, scary and potentially unsafe (identity theft) rules that you would like in place. Will America be able to continue to take an economic beating with no relief in sight? It will be hard for those of us who help people start their new home businesses actually sort through the fear that you will create with these new rules. Will the welfare system be able to help all of these hardworking Americans when we, as direct sales business owners, cannot? 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, Michelle L. Rensberger