| Comment Number: | 522418-01307 |
| Received: | 6/7/2006 2:58:48 PM |
| Organization: | SCENT-SATIONS, INC. / MIA BELLA / CANDLE PRINCESS |
| Commenter: | MICHELLE ANTHONY |
| State: | MA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
June 7, 2006 Re: Business Opportunity Rule, R511993 To Whom It May Concern: I am writing this letter to express my strong opposition to the proposed Business Opportunity Rule R511993. I understand that it is the responsibility of the Federal Trade Commission to protect the public from "unfair and deceptive acts or practices," but the rule as proposed would make it quite difficult for me to operate my business as a Scent-Sations Inc. Independent Distributor. One of the most confusing and burdensome sections of the proposed rule is the seven-day waiting period to enroll new distributors.. If someone wishes to become a Scent-Sations Distributor they simply fill out an application at no cost to them. There is no additional kits to purchase or fee required. This is far less than many, consumer purchases, from televisions to all manner of household appliances, none of which require a seven-day waiting period. In addition, the seven-day waiting period is unnecessary in that Scent-Sations Inc already has a 90% buyback policy for products! The proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. There are too many problems with this proposed requirement. In this day of identity theft and fraud, I am uncomfortable giving out the personal information of other Scent-Sations distributors, without their knowledge or consent, to complete strangers. I understand that those who sign up after the rule takes effect would be told in writing "If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers." I believe that this would discourage new people from signing up as distributors as they are not only concerned about identity theft, yet their privacy as well. People today are understandably reluctant to share their private and personal information with individuals they have never met. Providing the ten references could also hurt the businesses of numerous Scent-Sations distributors. Lower ranking distributors are involved in more than one direct selling company. Providing a list to a potential recruit, who could already be a distributor for a competing direct selling company, maybe an invitation to solicit existing distributors for such other opportunity. The ten reference requirement is an administrative burden. In order to obtain the list of 10 prior purchasers, I would have to provide Scent-Sations Corporation with the prospective distributor's address, and then wait to receive the list of the 10 nearest distributors who became distributors within the past three years. Each possible recruit would need a customized disclosure statement. This will result in a delay much longer than seven calendar days before any potential recruit can sign an application. In regards to the fact that many people enter direct selling part-time to earn extra income for a reason, such as vacation, holiday presents, savings, etc. the long wait with the proposed rule could possibly tie up monies to be earned. The proposed rule calls for the release of any information regarding lawsuits that allege misrepresentation, or unfair or deceptive practices over a ten-year period. It does not matter if the company was found innocent or not liable. Today, almost all business lawsuits contain claims of misrepresentation or unfair competition. It does not make sense to me that I would have to disclose these lawsuits unless Scent-Sations Corporation, or its officers, directors or sales department employees, had been found guilty or liable. I have been a Scent-Sations Inc., distributor since November 8, 2004. I cannot afford day care, since no employment out there will pay enough to cover the cost of day care. It is a fun business to be in and we all work as a team. There is no other business that I heard of that works the way Mia Bella does. Sincerely, Michelle Anthony