| Comment Number: | 522418-05410 |
| Received: | 7/1/2006 12:38:32 AM |
| Organization: | Quixtar |
| Commenter: | N Gursahani |
| State: | IL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Both me and my wife were recruited in the Quixtar MLM in June 2002. We quit this business in dec 2005. In the 2.5 years we actively build this business we lost close to US $20,000. We lost this amount buying excessive quixtar products to reach platinum level and this was all done at the guidance of our upline. In order to stop this exploitation FTC should adopt rules that require: 1. All multi-level marketing companies must comply with earnings-claims disclosure rules. No multi-level marketing company should be given an option of making "no earnings claims". 2. Multi-level marketing companies must disclose the average retail-based income earned by participants in each level of the hierarchy. 3. Income disclosures of multi-level marketing companies must include: -- The total number of all participants who joined in the past year, not just the so-called "active participants" in one part of a year. -- The average NET, not gross, income of participants in each level. Average net income is the average of all monies received from the company by participants minus the average of all moneys paid to the company by participants in each level. Expenditures paid to the company include product purchases, renewal fees, shipping costs, books, audio and video tapes, training and motivation seminars, computer fees, etc.