| Comment Number: | 522418-02051 |
| Received: | 6/13/2006 8:24:09 PM |
| Organization: | Young Living |
| Commenter: | Barbara Wilke |
| State: | KS |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am writing this letter because I am concerned about the proposed Business Opportunity Rule R511993. While I understand the responsibilities of the FTC to protect the public from “unfair and deceptive acts or practices,” I believe that this proposed rule could prevent me from continuing as a distributor for Young Living Essential Oils. There are specific sections in the proposed rule that will make it very difficult, if not impossible, for me to sell Young Living's products. Like myself, the vast majority of Young Living distributors promote the purchase of product rather than any business opportunity. I have been a distributor with Young Living for several years. I became involved with this company because I felt the products were exceptional. Later on, I became further involved so that I could earn additional income. Through Young Living, I have developed leadership skills and cultivated many meaningful relationships. My family and I enjoy the health benefits of using these products daily and are thrilled to be part of Young Living. We have come to rely on the income from my direct selling business. The future of my family is dependent on the stability of the direct selling industry. Seven-Day Waiting Period One of the most confusing sections of the proposed rule is the seven-day waiting period to enroll new distributors. Young Living's Starter Kits cost only $50.00, and each kit contains products, samples, training materials, etc., worth far more than the sale price. When a Starter Kit is purchased, the purchaser becomes a distributor and is granted special discounted pricing on all orders. No commissions or other compensation is paid on these kits, and the company just covers its production costs. Having this waiting period gives the impression that there might be something wrong with the company or the compensation plan. I also think this seven-day waiting period is unnecessary because Young Living fully refunds this cost if the customer decides to send it back. Requiring a seven-day waiting period before a distributor is allowed to even place an order would be destructive to the businesses of thousands of distributors who are building a business around Young Living's products. It would also be quite burdensome for me to keep such detailed records of when I spoke with every single person about Young Living, and it would create lots of unnecessary paperwork to have to send these reports to my company headquarters. Litigation Information The proposed rule also calls for the release of any information regarding lawsuits involving misrepresentation or unfair or deceptive practices, regardless of whether the company was found innocent or not. Today, anyone or any company can be sued for almost anything. It does not make sense to me that I would have to disclose these lawsuits unless Young Living were found guilty. Otherwise, this company and I are put at an unfair disadvantage even though the company has done nothing wrong. To release this information would be misleading to prospective distributors.