| Comment Number: | 522418-04728 |
| Received: | 6/28/2006 3:54:10 AM |
| Organization: | Mary Kay Cosmetice |
| Commenter: | Cheryl Sloat |
| State: | FL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I oppose this rule because: 1. I do not think it is fair to separate network marketing from other franchise business. 2. I particularly oppose the waiting time before signing a contract. I have had a successful network marketing business for over 5 years. I run my business with utmost integrity as do other members of the industry who I know. This business works for those who chose to work. It does not work for those who chose not to work. The business requires a lot of consistent hard work but the rewards are plentiful. We can't open our front door and expect people to walk in and buy our products, we have to go out and get the business. My experience in the industry has indicated that the ones who complain are the ones who are not willing to do the work and has nothing to do with fraudulent activity on behalf of the company. They are lazy people and need to blame someone else for their own failures. You claim fraudulent activities? I believe there are a few companies out there; but, that doesn't happen with other franchise, large chain companies? You listed the number of complaints. Did you actually calculate the percentage of complaint compared to the total number of individual's representing that company? If you had 200 complaints against a company with over 100,000 consultants, that's only .2% What is that percentage on the industry as a whole? By passing this rule, you would be forcing the individual to disclose information that is not easily available and of no concern to the potential team member. Part of our business is to teach and promote enthusiasm and you want to make us wait at least a week between talking with someone about joining the company and having them sign a contract. Why do you want to take that away from us? You are putting a burden on individuals who don't deserve it and making a situation that is already challenging more difficult. I disclose everything a potential team member asks and then some. I have nothing to hide and to FORCE me to have that documented to present to someone is a violation of my rights. Any reputable network marketing company has specifically outlined rules their distributors must follow which address the issues of the rule you are trying to impose - including a cancellation policy. I strongly suggest you take a look at the agreements the companies have all the new consultants sign. The DSA regulations are very firm on these issues and any company of morals would be a member of this association. I cannot speak for the fradulent ones. This rule will directly affect the individual, not the company itself. Do you think you are missing your target on this one?