| Comment Number: | 522418-10462 |
| Received: | 7/16/2006 2:36:19 PM |
| Organization: | JS Essential Therapies |
| Commenter: | Jeffra Sinclair |
| State: | FL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
To Whom it may concern; I am wirting this letter because I am concerned about the proposed Business Opportunity Rule R511993. While I understand the responsibilities of the FTC to protect the public from unfair and deceptive acts or practices, I believe that this proposed rule could prevent me from continuing as a distributor for my MLM company. There are specific sections in the proposed rule that will make it very difficult, if not impossible, for me to sell the products. Like myself, the vast majority of distributors promote the purchase of product rather than any business opportunity. I have been a distributor with Dynamite Marketing & Young Living Oils for several years. I became involved with these companies because I felt the producty were exceptional. Later on, I became further involved so that I could earn additional income. Through Dynamite & Young Living I have developed leadership skills and cultivated many meaningful relationships. My family and I enjoy the health benefits of using these products daily and are thrilled to be part of Dynamite & Young Living. We have come to rely on the income from my direct selling business. The future of my business is dependent on the stability of the direct selling industry. Seven-Day Waiting Period is one of the most confusing sections of the proposed rule.Requiring a seven-day waiting period before a distributor is allowed to even place an order would be destructive to the business of thousands of distributors who are building a business around products. Having a waiting period gives the impression that there might be something wrong with the company or the compensation plan. It would also be a huge inconvenience and create alot of unnecessary paperwork to keep track of every single person I spoke with in regards to products. Exemption,for about 25 years the FTC's Franchise Rule included only those opportunities that requires a buyer to make payment of at least $500.00 within the first six months of operation. Any buyer making payments of less than $500.00 within the first 6 months was exempt from further requirements. The April 12, 2006, proposed rule completely eliminates this $500.00 exemption! In 1979, to justify the reasonable $500.00 exemption, the FTC wisely said: When the required investment to purchase a business opportunity is comparatively small, prospective purchasers face a relatively small financial risk. This is still true today. This exemption is necessary because without such an exemption, the proposed rule places an unreasonable burden on tens of thousands of distributors like myself, and on millions of direct selling and network marketing distributors throughtout the United States. This would be devastating to the growth of my business and that of millions of Americans. I believe that the proposed application of this rule to my business constitutes an unjustified overreaching. Please reinstate at least a $500.00 exemption. I appreciate the work that the FTC does to protect consumers, yet I believe this proposed new rule has MANY unintended consequences, and there are less burdensome alternatives available to achieving your goals. Thank you for your time in considering my concerns. Respectfully, Jeffra Sinclair JS Essential Therapies