| Comment Number: | 522418-04587 |
| Received: | 6/27/2006 2:27:46 PM |
| Organization: | |
| Commenter: | Martello |
| State: | PA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
To whom it may concern: I have been a Quixtar IBO since I was a student, and it has tremendously helped me in life in more ways than I could possibly explain in 4000 characters. I have learned myriad success and business principles outside of the classroom that have positively affected my life in so many areas, including both my job and academics. I strongly feel that when I was registered as an IBO I definitely received enough information to make an informed decision; and when I talk to other prospects I provide them with the exact same information. Every person I show my business plan to is personally informed by me that a Quixtar-based business is not a "get rich quick" scheme, and that hard work is required, and that success is NOT guaranteed. My prospects typically spend a mere $250 to register, which covers the initial registration fee and an optional product pack, ALL of which is FULLY refundable by me personally. To date, I have personally fully refunded a couple registrations since I started the business. In regards to the proposed regulation, my initial start-up costs are fully refundable, so there is no reason to impose a 7-day waiting period for registration. Also, I feel that the requirement to provide references would severely affect my business. If this rule was imposed there would be a risk that my prospects would register with one of the references instead of me, which is not fair at all. In addition, if my information was distributed among other IBOs, and given to prospects on a reference list, I would feel as though my privacy was severely violated. Additionally, my prospects always meet MORE than 10 IBOs in person anyway BEFORE they register. This usually takes place at a formal or informal informational meeting, with no pressure to register at all. In summary, this requirement would infringe on the privacy of every IBO whose name, address, and phone number was provided to prospects. It would also penalize myself, who would be required to give my prospects contact information for other IBOs, any of whom might be happy to register the prospect themselves. Moreover, I feel that a requirement to provide a list of all previous litigations is completely unnecessary. The proposal doesn't even adequately cover what a "sell" really is, so does that mean that each IBO would have to list all litigation involving Quixtar and the entire IBO force across the country? That would only have a negative impact on IBOs across the country because the reported litigations would even include cases that had no merit. Among other problems, this requirement would open up Quixtar and other legitimate companies to false accusations. Meanwhile, dishonest companies would simply ignore the rule. Furthermore, I am definitely in support of disclosing specific earnings of IBOs, because that's what I already do. I specifically disclose the average gross income for all IBOs, as specified in the SA-4400, as well as inform them of the average income for IBOs at different levels in the business. All the figures I report are approved by the FTC. If disclosures are needed, require a simple, standard, easily understood disclosure such as "average monthly gross income for 'active' IBOs." In contrast, I am not in support of a requirement for financial substantiation. Personal finance is personal business, and should not have to be disclosed to anyone, including prospects considering registration. This regulation is not only an infringement on an IBO's personal privacy, but is completely inappropriate since the prospects are already provided specific earnings disclosures approved by the FTC in the introductory packet. IBOs should possess substantiation for any claim, but should not be required to disclose it except when required by the FTC and similar state agencies in an agency investigation. Please seriously consider my comments when reviewing and/or revising this proposed regulation. Thank you for your time.