| Comment Number: | 522418-07392 |
| Received: | 7/10/2006 6:07:24 PM |
| Organization: | Michael Hollender Associates, INC |
| Commenter: | Michael Hollender |
| State: | FL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Michael Hollender Michael Hollender Associates, Inc July 9, 2006 Federal Trade Commission/Office of the Secretary, Room H-135 (Annex W) Re: Business Opportunity Rule, R511993 600 Pennsylvania Avenue, NW Washington, DC 20580 RE: Business Opportunity Rule, R511993 Dear Sir or Madam: The reason for this correspondence is to share my concerns regarding the FTC's proposed Business Opportunity Rule, (R511993). As presently drafted the "Rule" could drastically affect the stability and growth of my independent USANA Health Sciences highly successful small business. For over eleven years I have, with consistent effort, built a full time income with my independent USANA business and selling their high integrity products. I have put in over eleven years of hard work, time, effort and personal sacrifice to establish the income that has and continues to financially support myself and my family and our future. As a business man, running several of my own businesses since 1978, I do understand and honor the FTC's responsibility to protect the public but in my opinion the proposed rule goes too far with unnecessary and overly taxing requirements that WILL, I believe, make it next to impossible to sell USANA products and maintain my thriving small business. I believe the "Rule"as written and proposed will damage my future, my income and create unnecessary hardship for my family. My first concern is the proposed seven-day waiting period to enroll new Associates. It sends the wrong message to someone desiring to work hard and follow the rules with their own USANA business. It implies that to a prospective Associate that there might be something wrong with USANA it's products or it's business plan. Additionally, the cost to a new Associate to start their business is a mere $50, with a 100% buyback policy for the first 30 days and a 90% buyback on all useable products bought in the previous 12 months. The record keeping that would be required with this proposed seven-day waiting period would be a nightmare and severely hurt my small business. My second concern is that the proposed rule calls for releasing any information about lawsuits involving misrepresentation. The release of information would not indicate whether USANA was found guilty or not so it would send the message that USANA was a bad company, EVEN if they did nothing wrong. In todays world as I'm sure you would agree, anyone can sue any company or person, even if the suit has no merit. My third concern is that the proposed rule requires USANA to disclose to a potential new Associate, the names and contact information of a minimum of 10 previously enrolled independent Associates who live nearest to the prospective Associate. I am happy to provide references with their consent, but this is personal an sensitive information I consider both confidential and potentially (with out the previously enrolled Associate's approval) risky as to identity theft and personal security. The opportunity I have had in the past eleven years in build a lasting income by selling USANA products and teaching, and coaching others is the most personally satisfying and financially rewarding endeavor I have ever experienced. The proposed Rule would, if adopted, destroy not only my business and future, but the businesses and futures of many hard working USANA Associates who desire a better life for themselves and their families. I honor the work the FTC does to protect consumers, yet believe the proposed "Rule" has many burdens and unintended consequences. I believe in my heart that there has to be less burdensome alternatives that will achieve the goals of consumer protection the FTC seeks. Please consider my concerns and work to find rules that will NOT hurt all that I have worked for. Thanks for all you do and for considering my concerns and comments. Sincerely, Michael Hollender