| Comment Number: | 522418-00119 |
| Received: | 5/31/2006 4:12:32 PM |
| Organization: | Arbonne International Independent Consultant |
| Commenter: | Valerie Burke |
| State: | ID |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
June 1, 2006 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 an Arbonne International Independent Consultant . 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/promote Arbonne products. One of the most confusing and burdensome sections of the proposed rule is the seven day waiting period to enroll new consultants. Arbonne’s sales kit only costs $29. People buy TVs, cars, and other items that cost much more than that and they do not have to wait seven days. This waiting period gives the impression that there might be something wrong with the plan. I also think this seven-day waiting period is unnecessary because Arbonne already has a 45-day 100% buyback policy for all products and sales kits. Under this waiting period requirement, I will need to keep very detailed records when I first speak to someone about Arbonne and will then have to send in many reports to Arbonne headquarters. 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. Today, anyone or any company can be sued for almost anything. I know this as well as anyone since I am an Advanced Nurse Practitioner who must carry Liability Insurance. It does not make sense to me that I would have to disclose these lawsuits unless Arbonne is found guilty. Otherwise, Arbonne and I are put at an unfair advantage even though Arbonne 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 the 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 Arbonne International 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 a salesperson: “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 an Arbonne International Independent Consultant for about one and one-half years. Originally, I began using Arbonne’s products because I liked them and wanted to earn some additional money. Now my family depends on this extra income to supplement our budget. I just put in my resignation from my professional position as of June 30, 2006, and the income I generate from my Arbonne business is now crucial to my livelihood, as well as that of my family. 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, Valerie J. Burke, RN, MSN Independent Consultant Area Manager,