| Comment Number: | 522418-12446 |
| Received: | 7/17/2006 9:50:27 PM |
| Organization: | Noah's Ark Animal Workshop |
| Commenter: | Annette Yen |
| State: | IL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I am concerned about the proposed Business Opportunity Rule R511993. As I understand the proposed rule, I believe it would make it very difficult for me to continue as a representative with Noah's Ark Workshop. Although I understand that part of the FTC’s responsibilities is to protect the public from “unfair and deceptive acts or practices,” some of the sections in the proposed rule will make it very difficult, if not impossible, for me to sell my products. I've been in Direct Sales off and on for over 20 years and most recently with my current company for 2 years as it is a new company. Because of the fabulous products and unique opportunity of my company, our entire family is able to work in the business, including our children. As our business grows we look forward to a long and prosperous future in direct sales because of the great opportunity it offers.. I'm confused about some of the sections of the proposed rule. For instance, the 7 day waiting period for consultants to sign up. Noah's Ark Workshops starter kit only costs $129.00. On any given day, most people will spend that much money at their local warehouse club like Sams and Costco and they do not have to wait seven days. This waiting period gives the impression that there might be something wrong with the company or the compensation plan. I also think this seven-day waiting period is unnecessary, because my company already has a buyback policy for all starter kits and purchases. 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 my company is found guilty. Otherwise, my company, Noah's Ark Workshop and I are put at an unfair advantage even though the company has never done anything wrong. Finally, the proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the prospective purchaser. Although 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 company's home office and then wait for the list from them. 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 appreciate the work that the FTC does to protect consumers, yet I believe this proposed new rule has many unintended consequences and there are less burdensome alternatives available to achieving your goals. Thank you for your time and I appreciate you considering my comments. Respectfully, Annette Yen Independent Crew Member Noah's Ark Animal Workshops