| Comment Number: | 522418-00415 |
| Received: | 6/1/2006 9:10:14 PM |
| Organization: | Hopkins Distributing |
| Commenter: | Joe and Elaine Hopkins |
| State: | TN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
We strongly oppose the proposed Business Opportunity Rule R511993. The rule as proposed would make it very difficult for us to operate our business as a Shaklee Independent Distributor. One of the most confusing and burdensome sections of the proposed rule is the seven-day waiting period to enroll new distributors. Most of the people who sign an application do so to purchase Shaklee products at a wholesale price. in other words, they are solely consumers of the products. If they later wish to build a business, all they must do is supply Shaklee Corporation with their SS Number or TIN. There is no additional dit, fee or application required. The proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. There are many problems with this proposed requirement. In this day of identity theft, we are uncomfortable giving out the personal information of other Shaklee Distributors, without their knowledge or consent, to strangers. Also, we believe that this would dissuade new people from signing up as distributors as they are concerned not only about identity theft, but also about their privacy. This requirement also is an administrative burden which is unjustified and would cause significant delays. Regarding the proposed release of information gegarding lawsuits that allege misrepresentation, or unfair or deceptive practices over a ten-year period, it appears not to matter if the company was found innocent or not liable. This does not make sense to us. Fifty year old companies such as Shaklee Corporation and their distributors would be placed at a disadvantage compared to start-up direct selling companies, which may not yet have experienced litigation but which are far more likely to have legal issues. We have been Shaklee distributors for more than 28 years. Originally, we signed on with Shaklee because we liked the products and found them to be effective. Now, our desire is to continue into our retirement years to supplement our meager retirement income. We appreciate the FTC's desire to protect consumers, but believe this proposed new rule has many unintended consequences for direct sellers and that there are less burdensome alternatives available to the agency to achieve its goals. Thank you for the opportunity to comment. Joe and Elaine Hopkins