Comment Number: 522418-05884
Received: 7/4/2006 4:28:52 AM
Organization: LifeCircle Enterprises
Commenter: Melissa Mosley
State: IA
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

Thank you FTC for your interest in protecting the consumer from those who practice fraud and unethical business practices. As a consumer I appreciate protection, if it's fair to all people. I have been working since a teenager and have been exposed to all kinds of businesses. Consumer beware of fraudulent business "opportunities" has been around since the beginning of time. I work at a hospital and am a consultant. I personally have been involved as a DSA member through several legitimate good direct sales companies (Mary Kay, Longaberger, Mannetech, & Vemma). Through these companies I've had the opportunity to assist my family income as a single parent of three children. I am concerned with several aspects of your proposed rules, beginning with a 7 day waiting period. If a company has a return/cancellation policy that is consumer friendly and a liberal distributor cancellation policy, there shouldn't be a need for a 7 day waiting period. The 7 day period is simply forcing the direct saler to not have the freedom to offer products/service when the customer wants/needs the product. A person would not be asked to leave the store and come back in 7 days. This would be unfair to the consumer as well as the direct sales person. The nature of the direct sales business is so sales can occur in various locations, even worldwide at any time. Most companies in direct sales aren't set up with a daily regional listing of references. Common sense says to let the consumer beware if he/she needs references and can't get the information needed to make a good decision. Scams can be set up with references too, so this will not help eliminate the scam artist. The earnings claim statement is a good effort, however a fraudulent company will give inaccurate data and this will force the legitimate companies to provide detailed data that is already available, but will be required. The cancellation/refund policies are already in place by the legitimate companies and this will force these companies to provide detailed information for reporting. Disclosing this information could be misleading to the consumer. Alot of direct sales are in the business short term and this needs to be considered. As a mother of three, I have worked part time for more than 20 years in the direct sales business and find it a great way to make an extra income and be at home with kids also. The rules as you are hearing will create an extra burden on the good existing companies. Perhaps the FTC can do a nationwide, worldwide compaign on educating the consumer more. Oprah, 20/20, and other shows are constantly doing the educating. In the U.S. we have the freedom to make a living as we choose (within the laws and not harmful to society). Retailers, Wholesalers, and other companies also have unethical practice. Some of the rules are simply directed to the direct sales companies and this is unfair. I know there are consumers who simply suffer from fraudulent practices. At the same time, it's important to recognize the consumers who suffer come back for more. In other words, they simply don't choose to work with the legitimate companies, because the consumer wants fast earnings and get rich schemes. The old saying, "if it looks too good to be true, it probably is" needs to be drilled in these people's heads. Thank you FTC for trying to resolve these concerns. Please help the consumer beware and protect the direct sales companies along the way in your new rulings. Thank you. Melissa Mosley