From Mary Kay Inc to all sales directors:

Update Regarding FTC Proposed Rule-Making Activities

During the 42-year history of Mary Kay Inc., we have seen hundreds of proposals by local, state and federal governments that could affect the direct selling industry. Over the years, often times working in conjunction with the Direct Selling Association, we have successfully addressed such proposed legislation to protect your ability to conduct your Mary Kay business.

As you may know, in April 2006, the U.S. Federal Trade Commission (“FTC”) in Washington, D.C. proposed a rule that could affect the direct selling industry and Mary Kay. The FTC is making an effort to regulate fraudulent business opportunities. However, the FTC has cast its net so broadly that it could include Mary Kay and other legitimate direct selling companies. Unfortunately, the rule as it is currently proposed could impose requirements on legitimate direct selling companies that would be very burdensome. While we support the government’s effort to protect consumers from business opportunity frauds such as envelope stuffing schemes, we want to ensure their efforts do not harm legitimate direct selling businesses, such as Mary Kay.

Please be aware that the FTC rule in question is merely a proposal at this time, and we believe we have a real opportunity to change the proposal before it becomes final. As we’ve done many times in the past, you can be assured that Mary Kay Inc. is working closely with the Direct Selling Association to protect your ability to conduct your Mary Kay business. As Mary Kay Ash said, "You are in business for yourself, but not by yourself." Mary Kay, the Direct Selling Association and its member companies as well as several other trade associations representing a large segment of American businesses including the National Retail Federation and the U.S. Chamber of Commerce have filed written comments with the FTC. We believe these comments will help the FTC understand the dramatic impact this proposal could have on legitimate direct selling businesses.

You may receive inquiries from your unit members asking if they should submit individual letters to the FTC regarding the proposed rules. We do not recommend that individual letters be submitted at this time. As we continue our diligent efforts to obtain changes to the proposal before it becomes final, you can be assured that we will contact you with more information if there is a need for members of the Mary Kay independent sales force to become involved. In the meantime, we encourage you to stay focused on your Mary Kay business and the exciting year that lies ahead. If you or your unit members have questions regarding the FTC proposed rule, please contact the Legal Support Team at (972) 687-5777 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .