| Comment Number: | 522418-08655 |
| Received: | 7/13/2006 9:05:03 AM |
| Organization: | www.pause2shop.com |
| Commenter: | Colleen Newton Pause |
| State: | VT |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Colleen Newton Pause July 13, 2006 Federal Trade Commission/Office of the Secretary, Room H-135 (Annex W) 600 Pennsylvania Avenue, NW Washington, DC 20580 RE: Business Opportunity Rule, R511993 Dear Sir or Madam: I am writing this letter with great concern regarding the proposed Business Opportunity Rule R511993. I believe that in its present form, this rule could prevent me from continuing as a Market America Independent Distributor. I understand that part of the FTC’s responsibilities is to protect the public from “unfair and deceptive acts or practices,” however there are sections in the proposed rule that will make it very difficult, if not impossible for me to sell Market America products and services. I have been an Independent Distributor for Market America, Inc. for one year. I was originally introduced to the products and quickly became a loyal customer. Because my friends, my family, and myself had such wonderful results with the Market America products and because I wanted to earn some additional money – I became a small business owner. My family and I invest a lot of time and energy into our business; to the point that now my family depends on this extra income to supplement our budget. One of the most confusing and burdensome sections of Business Opportunity Rule R511993 is the seven-day waiting period to enroll new distributors. Are we selling handguns here? Market America’s subscription (sales) kit costs under $100. People buy cell phones, TVs, cars, and other items that cost much more than $100 and they do not have to wait seven-days. As with the waiting period for purchasing a handgun, this waiting period gives the impression that there might be something wrong with our company. The seven-day waiting period is not only unnecessary, but also places a large burden on me as an Independent Distributor. Under this waiting period requirement, I will need to keep very detailed records about when I first speak to someone about Market America and will then have to send in many reports to Market America headquarters. The paperwork will be overbearing and burdensome to me as a small business owner. Business Opportunity Rule R511993 requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. This business requirement may be in violation of my state’s laws regulating referrals, testimonials and advertising. Further, as a small business owner, I am quite uncomfortable with the thought of giving out the personal information of individuals to strangers - especially without their approval and the possibility of identity theft. In addition, giving away this information could damage the business relationship of the references that may be involved in other companies or businesses, including those of competitors. Business Opportunity Rule R511993 also calls for the release of any information regarding lawsuits. Business Opportunity Rule R511993 does not care if the company was found innocent. In today's lawsuit-happy culture, anyone or any company can be sued for almost anything. Frivolous lawsuits are not only expected, but also encouraged. It does not make sense to me that I would have to disclose these lawsuits. Market America and I are put at an unfair disadvantage - even though neither of has done anything wrong. I appreciate the commitment and work of the FTC to protect consumers. In the case of Business Opportunity Rule R511993 I believe this proposed new rule has many unintended consequences for small business owners like myself. There must be less burdensome alternatives available to achieve the FTC goals. Thank you for your time in considering my comments and concerns. Sincerely, Colleen Newton Pause Independent Market America Distributor www.pause2shop.com