Comment Number: 522418-07972
Received: 7/12/2006 7:17:43 AM
Organization: Shaklee Nutritional Supplements
Commenter: Frances Miller
State: MD
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

I am writing to express strong opposition to the proposed Rule R511993. I understand that the FTC must protect the public, but the rule as proposed would make it very difficult for me to operate my business as a Shaklee Independent Distributor. A burdensome section of the proposed rule is the seven-day waiting period to enroll new distributors. Most of the people who sign a Shaklee application are consumers of the products. If they later wish to build a business, all they must do is supply Shaklee Corporation with their Social Security Number or Tax ID number. No additional kit, fee, or application is required. The Shaklee Member Kit costs only $19.95. This is far less than most consumer purchases, from TV's to many appliances, none of which require a waiting period. The waiting period is also unnecessary in that Shaklee Corporation already has a 90% buyback policy for products, including the Member Kit, purchased by a distributor within the last two years. The proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. In this day of identity theft, I am uncomfortable giving out the personal information of other Shaklee distributors, without their knowledge or consent. I understand that those who sign up after the rule takes effect would be told in writing "If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers." This would dissuade new people from signing up as distributors as they are concerned not only about identity theft, but also about their privacy. Providing a list to a potential recruit, who may already be a distributor for a conpeting direct selling company, may be an invitation to solicit existing distributors for such other opportunity. The 10 reference requirement is an administrative burden. To obtain the list of 10 prior purchasers, I will need to provide Shaklee Corporation with the prospective distributor's address, and wait to receive the list of the 10 nearest distributors who became distributors within the past three years. Each prospective recruit will need a customized disclosure statement. This will result in a delay for longer than 7 calendar days before anyone can sign an application. Many people enter direct selling companies for a specific goal, such as holiday purchases or a family vacation. The "wait" may make the goal unattainable. The proposed rule calls for the release of any information regarding lawsuits that allege misrepresentation or unfair or deceptive practices over a 10 year period. It does not matter if the company was found innocent or liable. It does not make sense that I would have to disclose these lawsuits, unless Shaklee Corporation had been found guilty or liable. 50 year old coompanies would be at a disadvantage compared to start-up companies which may not yet have experienced litigation. I have been a Shaklee Distributor for more than 20 years. Orginally, I became a Shaklee Distributor because I love the company's nutritional/personal care/ household products and wanted to earn some extra income from home. I have 8 children, and working outside the home would have been counter-productive. Now my family depends on this income to supplement our budget. Thanks you for considering my comments, Sincerely, Fran Miller Shaklee Distributor for 20 years