| Comment Number: | 522418-10057 |
| Received: | 7/15/2006 4:53:56 PM |
| Organization: | Eniva Corporation |
| Commenter: | Daniel Petresky |
| State: | WI |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
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 new member of Eniva corporation. 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 Eniva products. One of the most confusing and burdensome sections of the proposed rule is the seven day waiting period to enroll new members at Eniva. People buy TVs, cars, and other items that cost much more than that and they do not have to wait seven-days. This waiting period gives the impression that there might be something wrong with the plan. I also think this seven-day waiting period is unnecessary, because Eniva already has a 90% buyback policy for all products including sales kits purchased by a salesperson within the last twelve months. Under this waiting period requirement, I will need to keep very detailed records when I first speak to someone about Eniva and will then have to send in many reports to [Eniva headquarters. [Litigation Information] 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 [DIRECT SELLING COMPANY] is found guilty. Otherwise, [DIRECT SELLING COMPANY] and I are put at an unfair advantage even though [DIRECT SELLING COMPANY] has done nothing wrong. [References] 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 [DIRECT SELLING COMPANY] 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. This is my first job as an independent sales representative. One of the main reasons I decided to become involved with this company is because of the integrity of the company and the high quality of its products. I have toured the manufacturing facility and heard many personal testimonies of people who have used Eniva products. I am not required to maintain any inventory . Customers receive their products directly from Eniva. I have no other employment or income. These regulations would make this business overly complicated and difficult to maintain or continue. 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, Daniel Petresky