|Received:||7/12/2006 1:30:05 AM|
|Organization:||Cinnabar Enterprises, Inc.|
|Commenter:||James Stull Sr.|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:Federal Trade Commission/Office of the Secretary, Room H-135 (Annex W) 600 Pennsylvania Avenue, NW Washington, DC 20580 RE: Business Opportunity Rule, R511993 Dear Sir or Madam: We are writing this letter because we are concerned about the proposed Business Opportunity Rule R511993. We believe that in its present form, it could prevent us from continuing as a Take Shape for Life Health Advisor. We 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 will make it very difficult if not impossible for me to sell Take Shape for Life products. The proposed rule 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 us that we would have to disclose these lawsuits unless Take Shape for Life is found guilty. Otherwise, Take Shape for Life and Jim & I are put at an unfair advantage even though Take Shape for Life has done nothing wrong. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. We would be glad to provide references, but in this day of identity theft, we are 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 the list of the 10 prior purchasers, we will need to send the address of the prospective purchaser to Take Shape for Life headquarters and then wait for the list. We 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. We have been a Take Shape for Life Health Advisors for more than 4 years. Originally, we became a Take Shape for Life Health Advisors because we like the products and wanted to earn some additional money. Now my family depends on this extra income to supplement our budget. We appreciate the work of the FTC to protect consumers, but we believe this proposed new rule has many unintended consequences and that there are less burdensome alternatives available in achieving its goals. Thank you for your time in considering our comments. Sincerely, Kathy and Jim Stull Cinnabar Enterprises, Inc.