| Comment Number: | 522418-07717 |
| Received: | 7/11/2006 3:21:18 PM |
| Organization: | Independent National Sales Leader - Longaberger |
| Commenter: | Evelyn Short |
| State: | KY |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Dear Sir or Madam: I am writing this letter because I am very concerned about the proposed Business Opportunity Rule R511993. I believe that in its present form, it will adversely affect my direct selling business as an Independent National Sales Leader with The Longaberger® Company. I understand that part of the FTC’s responsibilities is to protect the public from “unfair and deceptive acts or practices,” but some of the sections in the proposed rule inhibit my ability to have a career opportunity or offer the same to other women and men. One of the most confusing and troublesome sections of the proposed rule is the seven-day waiting period to sign up a new Home Consultant. To get started in a Longaberger business, the business kit only costs $199. There are a lot of things that people buy daily that cost more than $199 and they aren’t required to be subjected to a 7 day waiting period. In fact, if the government doesn’t do something about the gas pricing it could soon cost that much to fill up a vehicle! This waiting period simply gives the impression that there might be something wrong with our business opportunity. I also think this seven-day waiting period is unnecessary because direct selling companies have a 90 percent buy-back policy for all products, including business kits purchased by a salesperson within the last twelve months. In fact, our company’s buy-back exceeds the DSA Code of Ethics requirement which, in my opinion, makes this rule unnecessary. Under this waiting period requirement, I will need to keep very detailed records when I first speak to someone about Longaberger and will then have to send in many reports to the company headquarters. This will not only be time consuming, but as there are only so many hours in a day, in order to keep my business where it is today, I will have to work longer hours. I thought that this government supported small business – am I wrong? Additionally, it is my understanding that the proposed rule also calls for the release of any information regarding lawsuits involving misrepresentation, or unfair or deceptive practices. It does not matter if the company was found innocent. Today, anyone or any company can be sued for almost anything. It does not make sense to me that I would have to disclose these lawsuits unless Longaberger is found guilty. Otherwise, Longaberger and I are put at an unfair advantage even though The Longaberger Company has done nothing wrong. Once again, doesn’t this government support small business – and what about being innocent until found guilty? Why should we have to disclose any suit that The Longaberger Company has been involved in – even if they filed the suit themselves? Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. I am glad to provide references, but in this day of identity theft, I am very uncomfortable giving out the personal information of individuals (without their approval) to strangers. Also, giving away this information could damage the business relationship of the references who may be involved in other companies or businesses, including those of competitors. In order to get a proper list of the 10 prior purchasers nearest them, I will need to send the address of the prospective purchaser to Longaberger headquarters and then wait for the list. How ludicrous is that! If I want to go in a store and shop, they aren’t required to provide me with this information. I also think the following sentence required by the proposed rule will prevent many people from wanting to sign up as a salesperson: “If you buy a business opportunity from the seller, your contact information can be disclosed in the future to other buyers.” People are very concerned about their privacy and identity theft. They will be reluctant to share their personal information with individuals they may have never met. Once again, when I make a purchase at a store or online, they are required to provide this wording to me. In fact, many of them say that my privacy is protected. I only want to continue to protect my customer’s privacy I have been an Independent Longaberger Home Consultant for more than 18 years. I became a Longaberger Home Consultant because I loved the products, and I saw the opportunities and advantages of owning my own business. Now my family depends on this income to balance our budget, as this is a full time job for me. While I appreciate the work of the FTC to protect consumers, I strongly believe this proposed new rule has many unintended consequences and I would think there are other alternatives available in achieving its goals that have a much more positive outcome for all of us. I appreciate your time and consideration of my comments. Sincerely, Evelyn Short