| Comment Number: | 522418-09306 |
| Received: | 7/14/2006 10:54:22 AM |
| Organization: | lia sophia |
| Commenter: | Kay Johnson |
| State: | IL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Kay Johnson Lia Sophia Jewelry July 13, 2006 Re: Business Opportunity /Rule # 511993 Dear Madam or Sir, Since Business Opportunity Rule # 511993 as proposed will directly affect the future of my business I feel compelled to write this letter and voice my concerns. As a Direct Sales Regional Manager for lia sophia Jewelry, one of my responsibilities is to speak out when hearing of an unfair or deceptive statement or act made by one of my sales advisors. It’s my understanding this is one of the FTC’s responsibilities as well. When such a situation is brought to my attention, I immediately take the necessary steps to swiftly correct it on an individual basis and not involve any of the other advisors or managers who are not directly affected. It is my hope the FTC would act in the same manner, by acting on a case by case basis rather than punishing the entire direct sales industry. Due to the wording in some of the sections in Rule#511993 will make it more complicated, if not impossible for me to continuing to do the business I love, selling Lia Sofia jewelry. When I started this business three and one half years ago my husband was out of work, and we were very close to losing our home, and most every thing else we had worked so hard for over the years. I was told at that time if I had $100.00 dollars and could do 4 to 6 jewelry parties per month I could earn about $1000.00. I thought this would be a way to offset the cost of my prescription medication and I could be part of the functioning society again. Since then I have built my business to a 5 figure annual salary and helped numerous other women and their families realize there is a better life and achieve success beyond their dreams if they have $100.00 and a dream. To me this is the “American Dream”. One of the most disturbing and confusing sections of R # 511993 is the 7 day waiting period to enroll a new sales advisor into the lia sophia jewelry business. We are not selling guns, government secrets, or smuggling contraband, its high end fashion jewelry with a lifetime guarantee for goodness sakes. The initial start up fee for a new lia sophia advisor kit is $100.00 and lia sophia has a 90% buy-back policy for all product and kits within the first year. The $100.00 for a start-up kit is about 33% of my weekly gasoline cost for business travel, 15% of my monthly prescription medication cost, and 20% of my monthly medical insurance cost, none of which have a 7 day waiting period, Thank God. I feel the 7 day waiting period implies Lia Sophia is a struggling company or may have financial problems, which is definitely not the case. R #511993, as I understand it, under the waiting period will require me to keep detailed records when discussing lia sophia with a prospective advisor and additional reports to my corporate headquarters. R511993 also addresses any information regarding lawsuits involving misrepresentation and unfair or deceptive practice. Lawsuits are a common practice in todays society, and have destroyed many lives even when a not guilty verdict has been returned. Why would anyone want to disclose a lawsuit brought against them especially if a not guilty verdict was returned? This mentality would place lia sophia and myself at an unfair advantage, even though neither has done anything illegal. If R511993 as presented is implemented, perhaps it should be taken one step further to include the same information on windows of store front, schools, government offices, etc. Page 2 Finally R511993 requires disclosure of 10 prior buyers nearest to the prospective purchaser. As references are a great idea and I am happy to provide the upon request, this is very difficult to do without gaining approval from that reference, with respect to current identity theft problems in todays society. Furnishing a list of 10 prior references would require sending the information of the prospective purchaser to lia sophia corporate office and waiting for the return list. This would result in extended waiting periods and lost revenue. The statement addressing the purchase of a business opportunity and contact information being disclosed to future buyers, is also troublesome do to personal information being disclosed to an unknown party. While I understand and appreciate the FTC’s purpose is to protect the consumer, I don’t feel that all businesses operating in a legitimate and legal manner should be compelled to bare the burden of a few who are not. I request you find a means to accomplish your goals which would be less burdensome on Lia Sophia and myself as the adoption of “Business Opportunity Rule R511993” as it stands will decrease my business and will increase the cost significantly to the end user. Respectfully, Kay Johnson Region Manager lia sophia Jewelry