| Comment Number: | 522418-07868 |
| Received: | 7/11/2006 9:57:30 PM |
| Organization: | Henslee Enterprises |
| Commenter: | Mary Henslee |
| State: | TX |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Re: Business Opportunity Rule, R511993 Dear Sir or Madam: I am writing to express strong opposition to the proposed Business Opportunity Rule R511993. I do understand that the Federal Trade Commission must protect the public from "unfair and deceptive acts or practices," but the rule as proposed would make it very difficult for me to operate my business as a Shaklee Independent Distributor. A confusing and burdensome section of the proposed rule is the seven-day waiting period to enroll new distributors. Most of the people who sign a Shaklee application are consumers of the products. If they later wish to build a business, all they must do is supply Shaklee Corporation with their Social Security Number or Tax Ideitnfication Number. No additional kit, fee or application is required. The Shaklee Member Kit costs only $19.95. The proposed rule requires the disclosure of a minimum or 10 prior purchasers nearest to the prospective purchaser. In this day of identify theft, I am uncomfortable giving out the personal information of other Shaklee distributors, without their knowledge of consent. The 10 reference requirement is an administrative burden. To obtain the list of 10 prior purchasers, I will need to provide Shaklee Corporation with the prospective distributor's address, and wait to receive the list of the 10 nearest distributors who became distributors within the past three years. Each prospective recruit will need a customized disclosure statement. This will result in a delay far longer than seven calendars days before anyone can sign an applicaiton. Many people enter direct selling to earn extra income for a specific goal, such as holiday purchases or family vacation. The wait which the proposed rule creates may make the goal unattainable. The proposed rule calls for the release of any information regarding lawsusits that allege misrepresentation, or unfair or deceptive practices over a 10 year period. It does not matter if the company was found innocent or not liable. It does not make sense to me that I would have to disclose these lawsuits unless Shaklee Corporation, or its officers, directors or sales department employees, had been found guilty or liable. Fifty year old companies such as Shaklee would be at a disadvantage compared to start up companies, which may not yet have experienced litigation but are far more likely to have legal issues surrounding their opportunities. I have been a Shaklee Distributor for more than 29 years. Originally, we became a Shaklee Distributors because we love the Company's nutritional/personal care/household products and I wanted to earn some additional income to help with our children's college education working from home. Now we are helping with our grandchildren's college educations and depend upon this extra income to supplement our golden years. Thank you for considering my comments. Sincerely, Mary Henslee