| Comment Number: | 522418-08238 |
| Received: | 7/12/2006 2:34:16 PM |
| Organization: | |
| Commenter: | Johnf Ice |
| State: | MN |
| 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 concerned about the proposed Business Opportunity Rule R511993. I believe that in its present form, it could prevent me from continuing as a DISTRIBUTOR. 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 will make it very difficult if not impossible for me to sell successfully market products. One of the most confusing and burdensome sections of the proposed rule is the seven day waiting period to enroll new customers. Sales kits should not be required purchases and should have a 100% money back unconditional guarantee. Consumers make all kinds of purchase everyday and they do not have to wait seven-days but major purchases in many states are now returnable in 30 days for a full refund. Other types of business startups do not require a waiting period. This waiting period gives the impression that there might be something wrong with the products or the business. I also think this seven-day waiting period is unnecessary, because there are other options, some already in place as I have mentioned. Under this waiting period requirement the additional record keeping a filing of reports will be unacceptable for myself and new members. 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 the Company is found guilty. This rule puts my company and I are put at in unfair position even though we are innocent of any wrong doing. has 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 the list of the 10 prior purchasers, I will need to send the address of the prospective purchaser to my companies headquarters and then wait for the list. 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. I have been an Independent Direct Sales representative for over 10 years. Originally, I became a distributor because I liked the products and then wanted to earn some additional money. Now my family depends on this extra income to supplement our budget. I the last 10 year period I have earned and paid taxes on over $400,000. And I have helped many others earn extra income that they have paid taxes on. Network Marketing is responsible for a huge amount of secondary income in America today. Home based businesses account for most of the new business revenue generated today. This business model works internationally as well. It allows me to build a customer base around the world. This benefits not only the US economy but the World economy as well. The Network Marketing Model of bringing products to the market place is so successful the is being adapted and used all over the World. In Japan over 40% of all consumer commerce is done thru network sales organizations. I appreciate the work of the FTC to protect consumers, but I 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 my comments. Sincerely, John Ice