| Comment Number: | 522418-04744 |
| Received: | 6/28/2006 8:40:30 AM |
| Organization: | Fokam Business Associates |
| Commenter: | Matt Chappell |
| State: | IA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Thank you for giving me the opportunity to send my comments about your proposed changes. I have been a Quixtar business owner for the last two years and feel that the company operates at the highest level of integrity. I do feel that changes are needed and welcomed and I would like to ask for the elimination or change of the following provisions: Prospects would have to wait 7 days after receiving disclosures before they could register. Eliminate the waiting period, at least for opportunities like Quixtar where a prospect can get his money back if not satisfied. I would be required to give every prospect a list of "references" – the names, addresses, and phone numbers of 10 other IBOs in the area – seven days before the prospect registers. This requirement would infringe on the privacy of every IBO whose name, address, and phone number was provided to prospects. It would also penalize the sponsor, who would be required to give his prospect contact information for 10 other IBOs, any of whom might be happy to register the prospect themselves. I would have to give every prospect a list of all lawsuits, arbitrations, or other legal claims for the past 10 years involving Quixtar or its IBOs where the plaintiff alleged fraud, misrepresentation, or unfair trade practices – regardless of whether or not the accusation was true. Among other problems, this requirement would open up Quixtar and other legitimate companies to false accusations. Meanwhile, dishonest companies would simply ignore the rule. I would have to make a different disclosure for every income claim. If disclosures are needed, require a simple, standard, easily understood disclosure such as "average monthly gross income for 'active' IBOs." I would be required to provide prospects with personal financial documents to back up ("substantiate") any income claim. 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. Thank you for your time.