Notes from the Naturopath 

Proposed FTC Business Opportunity Rule - Urgent Action Needed

The Notice of Proposed Rulemaking (NPR) R511993 released by the Federal Trade Commission (FTC), which addresses business opportunities, could have a devastating impact on the entire direct-selling industry, requiring companies to drastically alter their sales methods and placing additional burdens on direct-sellers in order to comply with federal law.

In particular, the Rule, if adopted in its current form, would:

• Require that those disclosures be given at least seven days before any prospective purchaser signs a contract or makes payment to the seller;
• Require that the seller of a business opportunity provide a "disclosure statement" which would include information such as previous lawsuits, the number of direct sellers who cancel within two years and a list of "references" i.e., purchasers of the opportunity in the previous three years;
• Require business opportunity sellers who make earnings claims to provide an additional "Earnings Claim Statement" to prospective distributors, which would include extensive earnings disclosures that would need to be frequently updated and
• Create new definitions of "business opportunity," "business assistance" and "earnings claim", creating broad language to encompass many direct selling practices.
• Read the complete Rule (PDF)

We strongly urge you to draft a personal letter regarding the FTC's proposed rule. Your letter is important, since the FTC wants to hear comments from members of the public.

Written comments to the FTC must be received on or before June 16, 2006.

Please find a SAMPLE letter drafted by our attorney and the DSA, at the end of this message. This sample is meant only to be a GUIDE for you. The DSA has communicated to us that personalized letters will have a much greater impact than a mass-produced form letter. If you have already participated in sending a form letter, that's not a problem, but please also send a 'personal' letter, expressing how this 'rule' would impact you and your business.

Your letter should cover the following areas of concern in the rule:

Seven-Day Waiting Period
-Casts direct selling plan in a negative light
-Leads to record keeping and administrative problems
-Causes unnecessary delays

Litigation Reporting
-Is unfair that it does not distinguish between winning and losing lawsuits

References
-Is impractical to find 10 nearest distributors
-Raises privacy issues due to ID theft and safety

Appreciate FTC's Goals, But
-We understand there may be fraudulent groups out there, but the FTC's proposed rule would unfairly target legitimate direct selling businesses.

FTC Comment Form All comments MUST be submitted by June 16, 2006, to be considered, so please take 5 minutes right now!

Here is the comment I left. Personalize your own in accordance to your own experience and viewpoint. THANKS!!!!!

Sincerely, Vibraceous, ND

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MY PERSONAL COMMENT TO THE FTC:

Your help is needed in supporting a letter writing campaign to the Federal Trade Commission.

Please open the link of a sample letter from the Direct Selling Association to use as a template for your own personal letter. Your letters must be received by the FTC by June 16, 2006 so PLEASE share this with other interested parties and send immediately.

With all of us working together on this grassroots campaign we will make a difference. Hand written and personally signed letters have more impact than copies and emails. However, there is also an email address to direct your comments in the sample letter below.

To find your local representative we have provided a direct link as well as a link for the Commissioners of the Federal Trade Commission.

Proposed FTC Business Opportunity Rule

Sample Letter

FTC Commissioners

Locate Local Representative

VIBRACEOUS, ND

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