| Comment Number: | 522418-02245 |
| Received: | 6/15/2006 2:12:04 AM |
| Organization: | Mannatech |
| Commenter: | Lavonne Schott |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
TO: FEDERAL TRADE COMMISSION OFFICE OF THE SECRETARY: 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 Distributor for Mannatech. I understand that part of the FTC's responsibilities is to protect the public from "unfair and deceptive acts or practices," but some of the sections in the proposed rule will make it very difficult, if not impossible, for me to continue to sell Mannatech products. WAITING PERIOD: One of the most confusing and burdensome sections of the proposed rule is the seven-day waiting period to enroll new Distributors of Mannatech products. I am ADAMANTLY OPPOSED to this proposed rule. This waiting period gives the impression that there might be something wrong with the plan. I also think this seven-day waiting period is totally unnecessary, because Mannatech 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 Mannatech, and will then have to send in many reports to Mannatech headquarters. LITAGATION INFORMATION: The proposed rule also calls for the release of ANY informatioin 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 sebse to me that I would have to disclose these lawfuits UNLESS THE MANNATECH COMPANY HAS BEEN FOUND GUILTY. Otherwise, Mannatech and I are put at an unfair advantage, even though Mannatech has done nothing wrong. REFERENCES: 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 about being forced to give out the personal information of individuals, to total strangers (without their approval). 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 neeed to send the address of the prospective purchaser to Mannatech 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 PROBABLY BE QUITE RELUCTANT TO SHARE THEIR PERSONAL INFORMATION WITH INDIVIDUALS THEY MAY HAVE NEVER MET. I signed up with Mannatech in January, 2006, and have been using their products. I am currently starting to build a business, and hope to earn some additional money. I could not do this if I did not believe in the product. This new rule may ruin my chances to continue down this path. II appreciate the work of the FTC to protect consumers, but I believe this proposed new rule has MANY UNINTENDED CONSEQUENCES, and that there are less burdensome alternatives available in achieving its goals. Thank you for your time in considering my comments. Sincerely, Lavonne Schott