| Comment Number: | 522418-02150 |
| Received: | 6/14/2006 3:44:50 PM |
| Organization: | Weekenders USA |
| Commenter: | Jan Lynch |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
June 14, 2006 Federal Trade Commission/Office of the Secretary, Room H-135 (Annex W) Re: Business Opportunity Rule, R511993 600 Pennsylvania Avenue, NW Washington, DC 20580 RE: Business Opportunity Rule, R511993 Dear Sir or Madam: This letter is in regards to the proposed Business Opportunity Rule R511993. In its present form, it could prevent me from continuing as a Weekenders Coordinator. Sections in the proposed rule will make it very difficult, if not impossible for me to sell Weekenders products. One of the most confusing and burdensome sections of the proposed rule is the seven day waiting period to enroll new Coordinators. Weekenders Sample Pak options range from $150 - 488. People buy TVs, cars, and other items that cost much more than that and they do not have to wait seven-days. This waiting period gives the impression that there might be something wrong with the plan. Tthis seven-day waiting period is unnecessary because Weekenders already has a 90% buyback policy for all products including sales kits purchased by a salesperson within the last twelve months. Under this waiting period requirement, I will need to keep very detailed records when I first speak to someone about Weekenders and will then have to send in many reports to Weekenders headquarters. The proposed rule also calls for the release of any information regarding lawsuits involving misrepresentation, or unfair or deceptive practices. It does not matter if the company was found innocent. Today, anyone or any company can be sued for almost anything. It makes no sense to me that I would have to disclose these lawsuits unless Weekenders is found guilty. Weekenders and I are at an unfair advantage even though Weekenders has done nothing wrong. Finally, the proposed rule requires the disclosure of a minimum of 10 prior Coordinators nearest to the prospective Coordinator. In this day of identity theft, I am very uncomfortable giving out the personal information of individuals (without their approval) to strangers. Also, giving away this information could damage the business relationship of the references who may be involved in other companies or businesses including those of competitors. In order to get the list of the 10 prior Coordinators, I will need to send the address of the prospective Coordinator to Weekenders headquarters and then wait for the list. I believe the following sentence required by the proposed rule will prevent many people from wanting to sign up as a salesperson “If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers.” People are very concerned about their privacy and identity theft and will be reluctant to share personal information with individuals they may have never met. I have been a Weekenders Coordinator for more than 7 ½ years. I am proud to represent Weekenders because of the high integrity the company has in the Direct Selling industry. I believe this proposed new rule has many unintended consequences and that there are less burdensome alternatives available in achieving its goals. Sincerely, Jan L. Lynch