| Comment Number: | 522418-05944 |
| Received: | 7/4/2006 3:04:07 PM |
| Organization: | Vemma |
| Commenter: | Jennifer Shanahan |
| State: | CO |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Dear Sirs, I am writing to you today regarding the proposed Business Opportunity Rule, R511993. As a consumer of goods, I understand the reason behind this law and I appreciate your efforts to ensure that people are safe from unscrupulous companies and people. However, it is my opinion that targeting legitimate Direct Selling Companies is not the answer to this problem and this rule misses the intended mark. I personally have worked in Direct Sales on and off for the last 10 years. I thoroughly understand that profits made are the direct result of the individual person and that each person’s results will vary, sometimes significantly. I fear this new rule threatens my personal business and if passed would likely put me right back into the corporate world, which is not what I wish for. This opportunity has given me back my freedom by allowing me to leave my corporate job to spend time with my family, time for myself, the ability to volunteer in my church and my childrens’ schools. This is a freedom I do not wish to give up easily. I got involved with Direct Sales because of the freedom it represents for me and my family, and because I know that this is legitimate “real” work. Direct Sales has given me the ability to greatly improve my personal development skills. I have not only improved my communication skills, but have increased my confidence! This business model has given me the opportunity to get started in my own business with very low start up costs. As with any business there are start up costs, but direct sales is often on the low end of these costs. If I were required to pay large start up costs, such as those associated with a Franchise Opportunity, I would not have been able to join this company. I fear that this new rule would become a stumbling block for those who are serious about starting their own business! The seven day waiting period would cause unnecessary delays for those who wish to get involved in direct selling. In addition, most direct selling companies – mine included – offer a 30-day money back guarantee so if someone does decide in time that this is not the business for them they can get out. I heard more objections from family to this business in the first week than I heard positive feedback. I believe the seven day waiting period would unnecessarily cast negative light on direct selling companies. Again, many of these companies have a money back guarantee - a safety net if you will. A seven day waiting period is simply not practical or cost effective. Litigation is prevalent in the United States of America. I know this first hand because my brother is a Litigator. I do not believe disclosing lawsuits for direct selling companies is necessary and would be unfair because it would not distinguish between losses and wins. If it distinguishes legitimate lawsuits from frivolous ones, then great! I’m all for it. I also worked for 10 years for a large corporation that dealt with lawsuits often. We weren’t required to disclose to new customers that others had filed lawsuits against us, many of which were frivolous and we won. Regardless of the outcome, why should we impose this rule on direct selling companies? Although I agree that earning claims statements should be legitimate, those who make unfounded claims would continue to do so regardless of the rule imposed. These are criminally minded people who care nothing for legitimate business. In other words I believe this rule is ineffective and unnecessary. I value my privacy. There are privacy and safety issues with the rule surrounding references. I don’t want my information disclosed, and I’m sure others feel the same way. My mother was a victim of identity theft and it was very costly and had a major impact on her emotionally. In addition, potential lawsuits filed against my parent company for identity theft cases could increase membership fees. Because much of my business is done via the Internet, it would not be cost effective for our company to keep track of the 10 nearest existing sales people. It’s again not practical. I appreciate your time and consideration. This is legitimate business. Please reconsider this rule and invest the time to listen to those who are involved in direct sales. I’m a hard working American who happens to be involved in direct sales. Don’t hurt us by listening to a handful of frustrated flakes! Most sincerely, Jennifer Shanahan Denver, Colorado Registered Republican