Comment Number: 522418-02416
Received: 6/15/2006 6:20:44 PM
Organization:
Commenter: Charlene Wagenbach
State: IA
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I am writing this email because I am concerned about the proposed Business Opportunity Rule R511993. As it is currently written, I believe that it could prevent me from continuing as a Mannatech Wellness Consultant. 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. The seven day waiting period is confusing and burdensome. Mannatech sales kits cost $99. to $1099, people purchase TV's, cars and other items that cost more and there is no seven day waiting period for these purchases. This waiting period gives the impression that there might be something wrong with our plan. This waiting period is 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 products and will then have to send in many detailed reports to Mannatech headquarters. This proposed rule also calls for the release of any information regarding lawsuits involving misrepresentation, or unfair or deceptive practices. It makes no allowance for frivolous lawsuits or if the company is 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 Mannatech is found guilty. With this rule, Mannatech and I are put in an unfair light even though Mannatech has done nothing wrong. Also, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. I would gladly provide references, but in this day of identity theft, I am very uncomfortable giving out the personal information of individuals (without their prior approval) to strangers. Giving out this information could damage the business relationship of the references who may be involved in other companies or businesses including those of competitors. To obtain the list of the 10 purchasers, I will need to send the address of the prospective purchaser to Mannatech headquarters and then wait for a list. I also think the following sentence required by the proposed rule will prevent many people from wanting to become 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. Many will be reluctant to share their personal information with individuals they have never met. I have been a Mannatech Wellness Consultant for over seven years. My family and I began using the Mannatech products for health reasons. We are so thankful that we can share these great products with others and earn additional income. We depend on this extra income to supplement our budget. I 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, Charlene Wagenbach