Writing Letters and Emails to mam
Answers
Dear Sir/Ma'am,
I am writing this letter to express my strong opposition to the proposed Business Opportunity
Rule R511993. I understand that it is the responsibility of the Federal Trade Commission to
protect the public from "unfair and deceptive acts or practices," but the rule as proposed
would make it very difficult for me to operate my business as a Shaklee Independent
Distributor.
One of the most confusing and burdensome sections of the proposed rule is the seven-day
waiting period to enroll new distributors. Most of the people who sign an application do so to
purchase Shaklee products at a wholesale price. In other words, they are solely consumers of
the products. If they later wish to build a business, all they must do is supply Shaklee
Corporation with their Social Security Number or Tax Identification Number. There is no
additional kit, fee or application required. The Shaklee Member Kit costs only $19.95. This is
far less than many, if not most, consumer purchases, from TVs to all manner of household
appliances, none of which require a seven-day waiting period. In addition, the seven-day
waiting period is unnecessary in that Shaklee Corporation already has a 90% buyback policy
for products, including the Member Kit, purchased by a distributor within the last two years.
The proposed rule requires the disclosure of a minimum of 10 prior purchasers nearest to the
prospective purchaser. There are many problems with this proposed requirement. In this day
of identity theft, I am uncomfortable giving out the personal information of other Shaklee
distributors, without their knowledge or consent, to strangers. I understand that those who
sign up after the rule takes effect would be told in writing "If you buy a business opportunity
from the seller, your contact information can be disclosed in the future to other buyers." I
believe that this would dissuade new people from signing up as distributors as they are
concerned not only about identity theft, but also about their privacy. People today are
understandably reluctant to share their personal information with individuals they may never
have met.
Providing the ten references also could damage the businesses of numerous Shaklee
distributors. Lower ranking distributors often are involved in more than one direct selling
company. Providing a list to a potential recruit, who may already be a distributor for a
competing direct selling company, may be an invitation to solicit existing distributors for such
other opportunity.
The ten reference requirement also is an administrative burden. In order to obtain the list of
10 prior purchasers, I will need to provide Shaklee Corporation with the prospective
distributor's address, and then wait to receive the list of the 10 nearest distributors who
became distributors within the past three years. Each prospective recruit will need a
customized disclosure statement. This will result in a delay far longer than seven calendar
days before any potential recruit can sign an application. In view of the fact that many people
enter direct selling part-time to earn extra income for a specific goal, such as holiday
purchases or a family vacation, the long wait which the proposed rule will entail may make the
goal unattainable.
The proposed rule calls for the release of any information regarding lawsuits that allege
misrepresentation, or unfair or deceptive practices over a ten-year period. It does not matter
if the company was found innocent or not liable. Today, almost all business lawsuits contain
claims of misrepresentation or unfair competition. It does not make sense to me that I would
have to disclose these lawsuits unless Shaklee Corporation, or its officers, directors or sales
department employees, had been found guilty or liable. Otherwise, fifty-year old companies
such as Shaklee Corporation and their distributors would be placed at a disadvantage
compared to start-up direct selling companies, which may not yet have experienced litigation
but which are far more likely to have legal issues surrounding their opportunities.
I have been a Shaklee Distributor for less than 1 year. Originally, I became a Shaklee Member
because I love the Company's nutritional/personal care/household products. I became a
Distributor when I saw the interest it generated withwanted an EASY way to earn some additional income working from home. I now rely on this
extra income to supplement my families' budget and to provide my children with some extra
fun activities.
While I appreciate the work of the FTC to protect consumers, I believe this proposed new rule
has many unintended consequences for direct sellers and that there are less burdensome
alternatives available to the agency to achieve its goals.
Thank you for your time in considering my comments. my family, friends, and neighbors. I also