| Comment Number: | 522418-01627 |
| Received: | 6/9/2006 4:23:40 PM |
| Organization: | FDI (Financial Destination, Inc.) |
| Commenter: | Sandy Holte |
| State: | MN |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
RE: Business Opportunity Rule Dear Sirs: 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," and think it's wise, however, the rule as proposed would make it very difficult for me to operate my business as an HONEST Independent Representative, having to know and understand uncommon legal issues and unfair requirements. Being of a simple background, it is confusing for the proposed rule to have a seven-day waiting period to enroll new distributors or reps, and also require the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser! I also 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." It is my feeling that there are many problems with this requirement. In this day of identity theft and privacy issues, I am uncomfortable giving out personal information of other Independant Representatives as well as having mine given out without knowledge or consent to strangers, or others who end up having no need of this PERSONAL information! I believe that this would dissuade new people from signing up as Representatives as they are concerned not only about identity theft, but also about their PRIVACY. People today are understandably reluctant to share their personal informationwith individuals they may never have met. ALSO, providing the ten references is not only cumbersome but also could damage the businesses of numerous Independant Representatives. Many lower ranking Representatives are often are involved in more than one direct selling company, such as myself. I am also a Representative for Young Living. Providing a list to a prospect, who may already be a Representative for a another direct selling company, may be an invitation to solicit existing representatives for such OTHER opportunity! The ten reference requirement also is an administrative burden. In order to obtain the list of 10 prior purchasers, I will need to provide my Corporation with the prospective distributor's address, and then wait to receive the list of the 10 nearest distributors who became Representatives or distributors within the past three years. Each prospective recruit will need a customized disclosure statement. This will result in a delay far longer than seven calendar days before any potential recruit can sign an application. In view of the fact that many people enter direct selling part-time to earn extra income for a specific goal, such as holiday purchases or a family vacation, the long wait which the proposed rule will entail may 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 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 also does not make sense that I would have to disclose these lawsuits unless my Corporation, or its officers, directors or sales department employees, had been found guilty or liable. That is just getting too confusing and cumbersome. I LOVE the products and benefits of my company!! I originally became an FDI Representative because I love the Company's financial products and wanted to not only learn and become better educated and responsible with my income, but earn additional income working from home instead of at a standard job where there are many roadblocks to additional growth. Now, my husband and I depend heavily upon this extra income for our livelihood! Please reconsider. Sincerely, Sandy Holte