| Comment Number: | 522418-02162 |
| Received: | 6/14/2006 4:38:35 PM |
| Organization: | Home Touch, Inc |
| Commenter: | Toni Muscatello |
| State: | CO |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Toni Muscatello Home Touch, Inc. 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, I am writing this letter because I am concerned about the proposed Business Opportunity Rule, R511993. I believe that if this proposed ruling is adopted, it will prevent me from continuing my network marketing business as an associate of Mannatech Incorporated. I understand that it is part of the FTC’s responsibility to protect the public from “unfair and deceptive acts and practices,” but some of the proposed rule would make it very difficult and almost impossible for me to sell Mannatech products. One of the most burdensome and confusing sections of the proposed rule is the seven day waiting period to enroll new associates. Mannatech’s kit only costs $1099.00 and people go out and purchase new TVs, cars, and other items that cost far more than $1100.00 and do not have to have wait seven days. I also think that this waiting period would make people think that there is something that is wrong with our plan. Mannatech Incorported already has a 90% buy back policy for all kits purchased by a sales person within the last 12 months. Under this waiting period requirement, I would need to keep very detailed records of when I first spoke with someone about Mannatech and then would have to send in many reports to Mannatech 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 does not make sense to me that I would have to disclose these lawsuits unless Mannatech Incorporated is found guilty. Otherwise, Mannatech and I are put at an unfair advantage even though Mannatech Incorporated has done nothing wrong. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. I am glad to provide references, but 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 purchasers, I will need to send the address of the prospective purchaser to Mannatech headquarters and then wait for the list. I also think 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. They will be reluctant to share their personal information with individuals they may have never met. I have been an Associate with Mannatech Incorporated for more than 10 years. Originally, I became a Mannatech Associate to get the products because I like them and wanted to earn some additional money. Now my family depends on this extra income to supplement our budget. I have two children in college and my income is what is supporting them. My business is a very important part of my and my family’s life and ruling would severely impact not only my business but also my family’s life as well. I appreciate the work of the FTC to protect consumers, but I believe this proposed new rule has many unintended consequences and that there are less burdensome alternatives available in achieving its goals. Thank you for your time in considering my comments. Sincerely, Toni Muscatello,