| Comment Number: | 522418-02491 |
| Received: | 6/15/2006 11:36:18 PM |
| Organization: | Sunrider International |
| Commenter: | Ellen Valentine |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Ellen Peterson-Valentine Catch the Sun Health 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: 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 an Independent Sunrider Distributor. 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 Sunrider® products. One of the most confusing and burdensome sections of the proposed rule is the seven-day waiting period to enroll new Distributors. One of the most important aspects of Sunrider’s distributor plan has always been the no hype and non-pushy manner in which sales reps can come aboard. The next and equally important aspect is that there is no front-loading, simply the small demo pack of products, used by the person purchasing, and whatever else they chose to order. Sunrider’s Starter Pack costs only $140, and is not a mandatory purchase in order to become an Independent Sunrider Distributor. To rule in the manner you suggest would mean what - that eventually I will go to Best Buy or Cosco, find an item I want, ask for it to be held and then return in seven days to purchase? That is as ludicrous an idea as your proposal. Any such idea in any sales arena suggests that something is wrong with the product. Why should my customers have to wait for something they want, whether it is full distributorship, or not. I also think this seven-day waiting period is unnecessary because Sunrider already has a generous 60-day return policy for existing Distributors that is applicable to all products, including the Sunrider® Starter Pack. Sunrider also has a 90% buyback policy for former Distributors applicable to all products purchased within the last twelve months. Another problem with the seven-day waiting period is the administrative burden of keeping very detailed records when I first speak to someone about Sunrider, and then having to send numerous reports to Sunrider 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 Sunrider is found guilty. Otherwise, Sunrider and I are put at an unfair advantage even though Sunrider has done nothing wrong. Litigation runs so high in this society that I choose not to muddy clean waters with a lot of mumble gumble. Especially when a company has been found innocent. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. As a nutritionist I do not give out personal information regarding any of my clients. It is unethical. I will not do it. 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 Independent Sunrider Distributor for more than nineteen years. Originally, I became a Distributor of Sunrider’s products because our family realized the whole food value, and better health. Then I relied on the consistent distributor discount , and then the rebate that allowed me to continue purchasing wonderful supplements for my family of five. After nineteen years I can only add that these products have more than become a part of our family. As a nutritionist I must give my clients all possible opportunities to add to their own good health, get a discount and rebates if THEY so choose. 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. I also know for a fact that some laws will tie the hands of consumers over the long term and I do not support that type of regulatory legislation Thank you for your time in considering my comments. Sincerely, Ellen Peterson Valentine {Name}