| Comment Number: | 522418-04231 |
| Received: | 6/25/2006 7:49:14 PM |
| Organization: | Life Design Unlimited |
| Commenter: | Jennifer Enochs |
| State: | CO |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Re: Business Opportunity Rule, R511993 Good Morning: I am writing to express strong opposition to the proposed Business Opportunity Rule. I understand that the FTC must protect the public from unfair and deceptive acts or practices, but the rule, as proposed, would make operating my business as a Shaklee Independent Distributor extremely difficult. 1) The seven-day waiting period to enroll new distributors: Most of the people who sign a Shaklee application are product consumers who become members somewhat like those who join a buying club like Sam’s or Costco. The Shaklee Member Kit costs only $19.95. This is far less than most consumer purchases, none of which require a waiting period. Shaklee Corporation also has a 90% buyback policy for products, including the Member Kit, purchased by a distributor within the last two years which makes the waiting period unnecessary. Should they wish to build a business, all they must do is supply Shaklee Corporation with their SSN or TIN. No additional kit, fee or application is required. 2) Disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser: I am uncomfortable giving out the personal information of other Shaklee distributors, without their knowledge or consent. Telling prospective business builders their contact information can be disclosed in the future to other buyers if they buy this business opportunity, would keep new people from signing up as distributors because of identity theft or privacy concerns. Providing the 10 references also could damage Shaklee distributors' businesses. Lower ranking distributors often are involved in more than one direct selling company. Providing a list to a potential recruit, who may already be a distributor for a competing direct selling company, may be an invitation to solicit existing distributors for such other opportunity. Also, waiting to receive the list from the Shakee corporation of the 10 nearest distributors who became distributors within the past three years, would will result in a delay far longer than seven calendar days. 3) Release of any information regarding lawsuits that allege misrepresentation or unfair or deceptive practices over a 10-year period: It makes no sense to me that I would have to disclose lawsuits with allegations unless we (Shaklee or its representatives) had been found guilty or liable. When Dr. Shaklee started our company 50 years ago, he said,We will do business according to the Golden Rule. This is still our personal philosophy and the philosophy of our current owner and CEO. Start-up companies may not yet have experienced litigation but are far more likely to have legal issues surrounding their opportunities. I have been a Shaklee Distributor for more than 25 years. I became a Shaklee Distributor because I loved the Shaklee products and wanted to earn some additional income working from home when my children were small. Now we depend upon the products and income for our family and choose to offer the same Shaklee opportunity to others. Thank you for your time and consideration. Sincerely, Jennifer Sue Enochs Independent Shaklee Distributor