|Received:||6/30/2006 5:10:30 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I appreciate the intent of the FTC's Business Opportunity Rule because I have in the past been the victim of a less than legal and ethical multi level marketing company. However, in the four years I have been an independent business owner (IBO) with Quixtar everything I have seen is 100% legal, moral and ethical. As I experienced, there are MLM companies that need federal action to keep them in line, but Quixtar does not. There are several specific areas in the Business Opportunity Rule that would adversely effect my Quixtar business and not provide any benefit to my prospects. #1 - Prospects would have to wait 7 days after receiving disclosures before they could register. Quixtar has always offered a 365 day money back quarantee to all new IBOs. I suggest eliminate the waiting period, at least for opportunities like Quixtar where a prospect can get his money back if not satisfied. #2 - You 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 offers several challenges: 1) We are an internet based business that can be build anywhere in the US. As an IBO I do not have access to other IBOs in any particular area and I might be talking to a prospect in Toxey, Al and there may not be another IBO within 50 miles of that town. Additionally, this requirement would infringe on the privacy of every IBO whose name, address, and phone number was provided to prospects. Please eliminate the requirement to provide 10 references. #3 - You 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. Please eliminate the requirement to disclose past litigation. #4 - You would have to make a different disclosure for every income claim.This would include any examples you might use during an opportunity presentation to illustrate how the Plan works. Quixtar has required that an IBO show a prospect the "average monthly gross income for 'active' IBO's" ever since I have been in the business. If disclosures are needed, require a simple, standard, easily understood disclosure such as "average monthly gross income for 'active' IBOs." #5 - You would be required to provide prospects with personal financial documents to back up ("substantiate") any income claim. This requirement should be possess by the IBO for claims of income they have created through the opportunity. It is impracticle to expect substantiation of income amounts that can be created through the business opportunity. If I say that I have made $500 a month, I better have the copy of a $500 check from Quixtar. However, when I show a prospect how the marketing plan works that an IBO can make $2000 a month and I have not done it yet, what is there to substantiate? Thank you for considering the concerns I have in light of Quixtar have an exception business history and the parent company have more than 46 years of legitimate, moral and ethical business practices.