| Comment Number: | 522418-01355 |
| Received: | 6/7/2006 7:41:03 PM |
| Organization: | Shaklee Independent Distributor |
| Commenter: | Joyce Lash |
| State: | CO |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am writing to express strong opposition to the proposed Business Opportunity Rule R511993. I understand that the FTC must protect the public from "unfair and deceptive acts or practices," but the rule as proposed would make it very difficult for me to operate my business as a Shaklee Independent distributor. A confusing and burdensome section of the proposed rule is the 7-day waiting period to enroll new distributors. Most of the poeple who sign a Shaklee application are consumers of the products. If they later wish to build a business, all they must do is supply Shaklee Corporation with their Social Security Number or Tax ID number. No additional kit, fee, or application is required. The Shaklee Member Kit costs only $19.95. This is far less than most consumer purchases, none of which require a waiting period. The waiting period is also unnecessary in that Shaklee Corp. already has a 90% buyback policy for products, including the Member Kit, purchased by a distributor within the last 2 years. The proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. In this day of identity theft, I am uncomfortable giving out the personal information of other Shaklee distributors, without their knowledge or consent. The 10 reference requirement is an administrative burden. To obtain the list of 10 prior purchasers, I will need to provide Shaklee Corporation with the prospective distributor's address, and wait to receive the list of the 10 nearest distributors who became distributors within the past 3 years. Each prospective recruit will need a customized disclosure statement. This will result in a delay far longer than 7 calendar days before anyone can sign an application. Since many people enter direct selling to earn extra income for a specific goal, the wait crates a delay that could make the goal unattainable. The proposed rule calls for the release of any information regarding lawsuits that allege misrepresentation, or unfair or deceptive practices over a 10-year period. It does not matter if the company was found innocent or not liable. It does not make sense to me that I would have to disclose these lawsuits unless Shaklee Corporation, or its officers, directors, or sales department employees have been found guilty or liable. 50 year old companies such as Shaklee would be at a disadvantage compared to start-up companies, which may not yet have experienced litigation but are far more likely to have legal issues surrounding their opportunities. I have been a Shaklee Distributor for 19 years. Originally, I became a distributor because I love the company's nutritonal and household products and wanted to earn some additional income working from home. Now my family depends upon this extra income to supplement our budget. Thank you for considering my comments. Sincerly, Joyce G. Lash