| Comment Number: | 522418-12112 |
| Received: | 7/17/2006 6:29:25 PM |
| Organization: | Arbonne International |
| Commenter: | Shannon Harris |
| State: | NJ |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| Attachment: | 522418-12112.pdf Download Adobe Reader |
Comments:
Shannon Harris Regional Vice President Independent Consultant Arbonne International July 17, 2006 Federal Trade Commission/Office of the Secretary, Room H-135 (Annex W) Re: Business Opportunity Rule, R511993 600 Pennsylvania Avenue, NW Washington, DC 20580 RE: Business Opportunity Rule, R511993 Dear Sir or Madam: I am writing this letter because I am on opposition to the proposed Business Opportunity Rule R511993. I believe that in its present form, it could prevent me from continuing as an Arbonne Independent Consultant and hinder many other Direct Sales and Home Party organizations as well. I understand that part of the FTC’s responsibility is to protect the public from “unfair and deceptive acts or practices,” but some areas of the proposed rule will make it very difficult, if not impossible, for me to sell Arbonne products and sponsor people into the business. One of the most confusing and restrictive sections of the proposed rule is the 7-day waiting period to sign up new Consultants. I live in a community (Ocean County, NJ) where direct selling at home parties is very popular. It is pretty much common knowledge that to get the best discount on the products you need to become a “distributor” of that product. This goes for Creative Memories, Pampered Chef, Tastefully Simple – there are a host of others including Arbonne. Arbonne Starter Kits cost only $29, the proposed waiting period gives the impression that there might be something wrong with the Arbonne opportunity – or even in purchasing your products at wholesale as opposed to retail. I already keep very detailed records however this added paper work and waiting period will cripple my business. One of the key elements to my success in this business has been capturing the enthusiasm and immediate results prospects experience with the ability to purchase discounted Arbonne products; the waiting period would potentially limit my ability to grow my business. I mean – you pay $29 or so at Sam’s Wholesale Club for a discount card and then they don’t make you wait to then shop at your discount! The waiting period for a handgun is shorter! (I’m trying to be humorous not disrespectful please understand) The proposed rule also calls for the release of any information regarding lawsuits involving misrepresentation, or unfair or deceptive practices. It does not matter if the company was found innocent. A lawsuit may incorrectly imply wrongdoing and it seems unfair to disclose lawsuit information unless Arbonne has been found guilty of something. The impression a lawsuit would leave, even if I or Arbonne have done nothing wrong is sad. I know of so many people who have started businesses, gone bankrupt and then simply opened another business under another name. Arbonne consultants are simply building a business in most cases based on their OWN names. Perhaps disclosure of lawsuits against myself should only have to be disclosed. Finally, the proposed rule requires the disclosure of a minimum of 10 prior Independent Consultants nearest to the prospective Consultant. I am glad to provide references, but identity theft is a reality we live with in today’s world and I am very uncomfortable with giving out personal information about individuals, without their permission or knowledge, to strangers. Also, sharing this information could damage the business relationship of references with those involved in other companies or businesses, or provide an unfair advantage to competitors. In order to get the proposed list of 10 prior Independent Consultants, I would need to send the address of a prospect to the Arbonne corporate office in California and then wait for the list. The proposed rule also includes the language, “If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers” and prospects will be understandably concerned about their privacy. I would find it an invasion of privacy to disclose personal data, for my business purposes. I don’t see how this can even be legal or allowed. I have been an Arbonne Independent Consultant for almost two years. My husband and I have had our own internet business for 10 years. Waiting for people to pay us made it increasingly difficult to pay our bills on time. We had put our house on the market to downsize but then the Arbonne Opportunity saved our financial lives literally! This is a relationship based company. You are getting friends and family into your Arbonne business. This isn’t some underhanded bait and switch business opportunity. This is a Health and Wellness Company. I became a Consultant because I love the products and our family was in need of a second source of potential income. Since starting my Arbonne business, I have developed a team of over 300 Independent Consultants across the country and together we are helping our families enjoy better lives. I truly appreciate the work of the FTC in protecting consumers, and hope you will continue to keep an eye on ALL business practices but I believe this proposed new rule would have many detrimental (and unintentional) consequences to my Arbonne business and I hope there are alternative means to resolving the outstanding issues at hand, without harming the livelihood of millions of successful network marketers, like me. Thank you for your time and understanding. Sincerely, Shannon Harris