| Comment Number: | 522418-12277 |
| Received: | 7/17/2006 7:52:05 PM |
| Organization: | |
| Commenter: | Jessica Harnack |
| State: | TN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
As a Young American starting my path in life I have chosen to be a part of a Multi Level Marketing business. I am concerned about the proposed Business Opporunity Rule R511993. I believe that this rule constricts my freedom as a proud American to continue in the path that I have chosen. There are specific sections in the proposed rule that will make it difficult, if not impossible, for me to run my business. 1. Seven Day Waiting Period This waiting period is unnecessary because Young Living, with whom I am a distributor, fully refunds the cost of the starter kit if the customer decides to send it back. My business is built up with new distributors. Requiring prospective distributors to wait seven days is like hitting a self- destruct button! In addition it would be extremely burdensome for me to keep such detailed records of when I shared with every single person about Young Living. 2. Litigation Information The proposed rule also calls for the release of any information regarding lawsuits involving misrepresentation or unfair or deceptive practices, regardless of wether the company was found innocent or not. In these sue happy days anyone or any company can be sued for almost anything. It does not make sense to me that I would have to disclose these lawsuites unless Young Living were found to be guilty. Otherwise, this company and I are put at an unfair disadvantage even though the company has done nothing wrong. Releasing this information would be misleading to prospective distributors. 3. References The proposed rule requires the disclosure of a minimum of ten proir purchasers nearest to the prospective purchaser. Young Living simly does not sell ''business oppotunities'' in this fashion. People are very concerned with privacy and identity theft. I believe the following sentence required by the proposed rule will prevent many people from wanting to sign up as a distributor."If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers." 4. Cancellation Some people decide to stop purchasing from Young Living after a period of time of purchase very sporadicly and lose their distributor status. As with any large business, this amounts to tens of thousands of individual customers each year. Mantaining such lists and providing them for every potential distriutor and wholesale customer would be a horrendously unrealistic burden. 5.Exemption For about 25 years the FTC's Franchise rule included only only those opportunities requiring a buyer to make a payment of at least $500 within the first 6 months of operation. Any buyer paying less than $500 in the first six months of operation was exemt from further requirments. Please reinstate this wise exemption. I appreciate the work the FTC does to protect consumers, yet I believe this proposed new rule has unintended detrimental consequences, and there are less burdensome alternatives available to achiving your goals. Thank you for your time in considering my comments. Sincerly, Jessica Harnack