Business Opportunity Rule #522418-12148

Submission Number:
Gary Hudson
Initiative Name:
Business Opportunity Rule
Gary Hudson Unicity Business Owner 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 concerned about the proposed Business Opportunity Rule R511993. I believe that in its present form, it could prevent me from continuing as a Unicity Distributor. I understand that part of the FTC's responsibilities is to protect the public from "unfair and deceptive acts or practices," but some of the sections in the proposed rule will make it very difficult if not impossible for me to sell Unicity products. One of the most confusing and burdensome sections of the proposed rule is the seven day waiting period to enroll new Distributors. A Unicity sales kit for new Distributors only costs $40. This waiting period gives the impression that there might be something wrong with my business model. This seven-day waiting period is unnecessary, because Unicity already has a 100% buyback policy for new Distributor sales kits. It will also require extensive, unnecessary paperwork, something very burdensome for an independent business owner. 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 innocent of any wrongdoing. It does not make sense that I would have to disclose these lawsuits unless Unicity is found guilty. Unicity and I are put at an unfair advantage even though Unicity has done nothing wrong. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. I am glad to provide references, but in this day of identity theft, I am very uncomfortable giving out personal information of individuals (without their approval) to strangers. Also, giving away this information could damage the business relationship of the references who may be involved in other companies or businesses including those of competitors. In order to get the list of the 10 prior purchasers, I will need to send the address of the prospective purchaser to Unicity headquarters and then wait for the list. I also think the following sentence required by the proposed rule will prevent many people from wanting to sign up as Distributors: "If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers." People are very concerned about their privacy and identity theft. They will be reluctant to share their personal information with individuals they may have never met. I have been a Unicity Distributor for more than 14 years. Originally, I became a Unicity Distributor because I liked the products and wanted to earn some additional money. Now my family depends on this extra income to supplement our budget. I appreciate the work of the FTC to protect consumers, but I believe this proposed new rule has many unintended consequences and that there are less burdensome alternatives available in achieving its goals. Thank you for your time in considering my comments. Sincerely, Gary Hudson