|Received:||7/7/2006 6:16:32 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:I have been an Amway/Quixtar IBO (Independent Business Owner) for ~12 years, two different lines of sponsorship. For the last 4 years, I have been an "independent" IBO, with no tie to any large management/motivational group. My first 2 years as an IBO, I was affiliated with World Wide Dream Builders (WWDB) and up until 4 years ago, I participated in Network 21. It is very important to note that I am no longer connected with these groups. As an independent IBO, I market the Quixtar business opportunity exactly for what it is, a small home based business, easy and inexpensive to set up and run, without books tapes and functions. A very important point is that Quixtar is not WWDB, not Network21, not part of any large motivational groups "system". It is my understanding that the proposed regulations are intended to protect the public from deceptive marketing practices that are honestly not part of the Quixtar business. The deception, cultish indoctrination of the unwary, is the trademark and pervue of the large management groups. As an independent, I worry that part of the proposed regulations will be a much larger hurdle for those of us that are honest in our approach to this business, and in some cases actually support the "smoke and mirrors" of the large management groups. My concerns: 1. Prospects would have to wait seven days after receiving disclosures before they could register. - Simply unecessary because Quixtar has a money back policy. Other MLM's need what we have with Quixtar. Regulate a 30 day money back guarantee. 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. *** If I'm an independent IBO, I will not be able to provide this because I am independent and have very little idea of who is also in this business within my area. I may or may not have a downline. I may have just a few downlines, which is perfectly acceptable and more in line with the reality of this business model. If I'm part of a large marketing group, I would be overjoyed with this rule and hand pick and script the best references, maintaining the "big business" illusion. This is regulating a "Boiler Room" type scam into being and only supports the problem, the large deceptive management groups. 3. You would have to give every prospect a list of all lawsuits, arbitrations, and other legal claims for the past 10 years involving Quixtar and its IBOs where the plaintiff alleged fraud, misrepresentation, or unfair trade practices – regardless of whether or not the accusation was true. *** Amway/Quixtar and the independent IBO's are not the perpetrators of the legal problems. These suits arise as the result of the big management groups deceptions and lies that are part of their every day routine. As an independent business owner, I am more than willing to disclose my record. Why should I falsely affiliate myself with WWDB riff-raff? Maybe the IBO needs to be upfront about his marketing affiliations and provide prospects of all the alleged misdoings of his/her marketing group. Let's seperate the wolf from the sheep. 4. You would have to make a different disclosure for every income claim. *** Great! Let's also require that IBO's disclose how much their management group uplines are making from tapes, books and functions. Let's get the cards on the table. 5. You would be required to provide prospects with personal financial documents to back up ("substantiate") any income claim. *** No one short of the legal establishment has the right to request my financial documents. This is an unreal intrusion into anyones life and can't be justified because they are MLM marketing. I believe we need to honestly represent the business opportunity, not expose our personal finances. The real problem is not the business opportunity. It's the deceptions of the large groups. Let's not strengthen their hand.