| Comment Number: | 522418-08811 |
| Received: | 7/13/2006 2:13:53 PM |
| Organization: | Independent Shaklee Distributor |
| Commenter: | Susan Rankin |
| State: | PA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Re: Business Opportunity Rule, R511993 Dear Sir or Madam: I am writing to express VERY STRONG OPPOSITION to the proposed Business Opportunity Rule R511993. I understand that the FTC must protect the public from "unfair and deceptive acts or practices," but the rule as proposed would make it very difficult for me to operate my business as a Shaklee Independent Distributor. A confusing and burdensome section of the proposed rule is the 7 day waiting period to enroll new distributors. Most 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...far less than most consumer purchases--from TVs to all types of household 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 2years. The proposed rule requires disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. Because of rampant identity theft problems, I feel it is ILL ADVISED FOR ANYONE TO GIVE 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 registering as distributors in their concern about possible identity theft and also their privacy. Providing the 10 references also could damage the businesses of Shaklee distributors. Often lower ranking distributors are involved in more than one direct selling company. Providing a list to a potential recruit, who may already be a distributor for a competing direct selling company, provides an invitation to solicit existing distributors for the competing company. The 10 reference requirement is a rediculous administrative burden. To obtain a list of 10 prior purchasers, I will need to provide Shaklee Corporation with the prospective distributor's address, and then wait to receive a list of the 10 nearest distributors who became distributors within the past 3 years. Each prospective recruit will need a customized disclosure statement. This will result in a delay far longer than seven calendar days before anyone can even sign an application. Many people enter direct selling to earn extra income for a specific goal, such as holiday purchases or a family vacation. The wait which the proposed rule creates 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 doesn't matter if the company was found innocent or not liable. It doesn't make sense that I would have to disclose these lawsuits unless Shaklee Corporation, or its officers, directors or sales department employees, had been found guilty or liable. Fifty-year old companies such as Shaklee would be at a disadvantage compared to start-up companies, which may not yet have experienced litigation but are far more likely to have legal issues surrounding their opportunities. I have been a Shaklee Distributor for more than 25 years. Originally, I became a Shaklee Distributor because I love the Company's products and wanted to provide my family with needed additional income working from my home. Now my husband and I depend upon this as our primary income since the economy has downsized him 4 times and he is an age where companies want younger, less paid workers. Thank you for considering my comments. Sincerely, Susan M. Rankin