Comment Number: 522418-10876
Received: 7/16/2006 11:32:03 PM
Organization: Don & Marlene Hoirup
Commenter: Donald Hoirup
State: NC
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

Donald and Marlene Hoirup  July 16, 2006 To: F.T.C./Office of the Secretary, Room H-135 [Annex W] Re: Business Opportunity Rule, R511993 Dear Sir or Madam: I am writing to express strong opposition to the proposed Business Opportunity Rule R511993. I understand that the Federal Trade Commission must protect the public from " unfair and deceptive acts or practices," but the rule as proposed would make it very difficult for us to operate our business as a Shaklee Independent Distributor. Especially the confusing and burdensome section of the proposed rule that will impose the seven-day waiting period to enroll new distributors. Most of the people who sign a Shkalee 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 Identification 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 TVs to the many household applicances, 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, We are uncomfortable giving out the personal information of other Shaklee distributors, without their knowledge or consent. Providing a list to potential distributors who are often involved in more than one direct selling company, may be an invitation to solicit existing distributors for such other opportunity. This process would hurt the thousands of small business owners like Shaklee Independent distributors and would be very distructive in sharing the products and offering others the opportunity of building their own company with Shaklee Corporation. The 10 reference requirement is an administrative burden. The seven day waiting period would be inappropriate... since it would take much more time to get these references from Shaklee Corporation home office. Many people enter direct marketing 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. Regarding lawsuits that allege misrepresentation, or unfair or deceptive practices over a 10-year period. It does not make sense to us that we would have to disclose these lawsuits unless Shkalee Corporation, or its officers, directors or sales depoartment employees, had been found guilty or liable. Shaklee Corporation, a fifty-year-old company, 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. We are very grateful that Shaklee Corporation has been found to be legal, honest and willing to offer individuals like us the opportunity to improve the lives of others; their health, environment and their financial well-being. I and my wife, Marlene, have been Shaklee Distributors for 32 years. From day one we recognized and learned to appreciated the value of the Company's nutritional/personal care/household products and wanted to build our own independent business working from our home. I [Don] was a university teacher who after two years in our part-time business went full-time. We depend upon the income for our livelihood. Please go after the bad companies yet support and encourage the honest Companies and their distributors, like Shaklee Corporation. We appreciate you considering our comments. Sincerely, Donald and Marlene Hoirup Winston-Salem,