| Comment Number: | 522418-02868 |
| Received: | 6/16/2006 3:41:34 PM |
| Organization: | |
| Commenter: | Lindsay Peterson |
| State: | OR |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
To Whom It May Concern: I am writing in regard to the proposed Business Opportunity Rule R511993. Althought there are important benefits to be had, I am concerned that with its present points, it could prevent me from continuing my business as a Mannatech Associate. I understand the need 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 burdensome sections of the proposed rule is the seven day waiting period to enroll a new Associate. Mannatech sales kits only cost between $100-300. This waiting period gives the impression there might be something wrong with the Mannatech plan. Many other far more expensive purchases may be made without waiting periods, and it is important to consider the content of the purchase, and options available post-purchase, as opposed to delaying and inconveniencing the individual. The seven-day waiting period would be unnecessary for the Mannatech company, as there is already 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. Perhaps the use of a similarly-lengthed "cooling off" period in which the individual has the option of returning may be more appropriate, as opposed to a wait-to-purchase period. 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 is found guilty. Disclosing information of such a nature would cast Mannatech and my business in a negative light, despite the fact no wrong has been committed. 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 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 would 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 on 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 a Mannatech Associate for more than 4 years. Originally, I became a Mannatech Associate because I like their company and products and wished to earn some additional money. I have, and the products have been extremely benificial to the health of me and my family. My family, friends and I are saving a lot of money in health care costs, and I wish for this to continue. I appreciate the work of the FTC to protect consumers, but I believe this proposed new rule has many unintended consequences and there are less burdensome alternatives available which would achieve the same goals, and I hope such alternatives will be considered. Thank you for your time in considering my comments. Sincerely, Lindsay Peterson Mannatech Associate