| Comment Number: | 522418-02272 |
| Received: | 6/15/2006 9:40:38 AM |
| Organization: | Global Glycomics Solution |
| Commenter: | Cheryl Richardson |
| State: | FL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Cheryl Richardson Global Glycomics Solution June 15, 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: I am writing this letter because I am concerned about the proposed Business Opportunity Rule R511993. I believe that in its present form, it could prevent me from continuing as a Mannatech consultant. I understand that part of the FTC’s responsibilities is to protect the public from “unfair and deceptive acts or practices,” but some of the sections in the proposed rule will make it very difficult if not impossible for me to sell Mannatech products. One of the most confusing and discouraging sections of the proposed rule is the seven day waiting period to enroll new consultants or distributors. Mannatech’s sales kit only costs $99. People buy TV’s, 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. I also think this seven-day waiting period is unnecessary because Mannatech 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 Mannatech and will then 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 that I would have to disclose these lawsuits unless Mannatech is found guilty. Otherwise, Mannatech and I are put at an unfair advantage even though Mannatech 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.” In this day and age we are all concerned about our privacy and identity theft. Everyone should be reluctant to share their personal information with individuals they may have never met. I have been a Mannatech consultant or distributor for less than a year and I am completely satisfied with the products and the company. This type of company gives us ordinary people a chance to earn extra money and, if they so desire, build a business for themselves apart from the normal “rat race.” I am and have been connected to other direct selling companies by just purchasing their products. I do not want my personal information passed around under those circumstances either. Other times I have been registered with a direct selling company because I wanted their products and worked just to pay for the products I wanted. I have never been unhappy with any direct selling company I have done business with. I appreciate the work the FTC does 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, Cheryl Richardson