| Comment Number: | 522418-06083 |
| Received: | 7/5/2006 11:34:51 AM |
| Organization: | Quixtar.com |
| Commenter: | John Miglautsch |
| State: | WI |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
My wife and I have been involved with Quixtar.com for over 6 years. I have an internationally known consulting firm with past clients: IBM, Adobe, GM and USPS. Initially I was not remotely interested and therefore refused any information I was offered. I realized that the Internet would grow and I liked the person who tried to explain it to me. Our experience has been extremely positive. Not only has our support team helped us learn about being in business for ourselves but they have also freely coached us in many areas of our lives like helping us with our marriage, our priorities, our vision and straightening out our personal finances. We have also attained Platinum level which provides us regular monthly income (about three times our mortgage) as well as having access to some great exclusive products. 7 Day Wait: Most of our IBOs did not rush into this. It is not uncommon for several meetings to review information, sample products and answer questions. However, occasionally there are reasons people want to move more quickly (like an upcoming event or special promotion). To require a waiting period seems an unncessary interference. Providing References: When an IBO is starting out, they are assisted by their upline support team who presents the information to their friends. We always talk about additional upline who have achieved success and have assisted us personally. Therefore in a way, references are always provided. However, we do not provide contact information (nor have I ever been asked for it). If a prospect wants to meet our upline support team, they are invited to accompany us to a regional conference. Should the need arise, the upline has often provided contact information. Once again, we are already providing prospects and new IBOs the opportunity to meet others in the business. However, routinely distributing contact info to prospects would be impolite and extremely invasive. No business gives the president's phone # to job seekers. Some of our support team have tens of thousands of people in their organization. Part of the attraction of the business is the personal freedom (unlike a traditional job). Litigation List: In America, not only is a man innocent until proven guilty, but anyone can bring suit for any reason. These two principles make litigation disclosure unworkable. Since the terms are somewhat vague, it looks like all suits regardless of outcome would have to be disclosed. Every major corporation in America is facing almost countless frivolous suits almost all of which are dismissed as without merit. Nevertheless, the man on the street would be shocked to see these lists (which are often available on line). This proposal simply rewards startups who are not yet targets and penalizes well established, reputable but visible organizations. (Probably the opposite of what you are trying to achive) Specific Earnings Disclosure and Substantiation: In the business, we disclose average monthly and annual income figures (as provided by Quixtar). We have been told that we are not permitted (by FTC rules) to share personal information (including checks, etc.) since our personal experience may vary substantially from overall averages. Conclusion: Because I am involved in this industry, friends have brought stories of their experiences with other companies. Needless to say, many of these companies seem to have been specifically designed to circumvent any reporting rules and quickly take as much as possible from unsuspecting prospects. Because of this, it may seem that the FTC should take some action. At the same time, there will always be people who will attempt to skirt requirements while claiming legitimacy. We must be very careful not to impose onerous obligations on one of our country's best companies. Quixtar.com is a beacon, educating free enterprize evangelists around the world. They deserve your encouragement and empowerment.