Comment Number: 522418-07237
Received: 7/10/2006 12:00:12 AM
Organization:
Commenter: Patti Carlton
State: CA
Subject: Business Opportunity Rule
Title: Notice of Proposed Rulemaking
CFR Citation: 16 CFR Part 437
No Attachments

Comments:

It has come to my attention there are proposed changes to FTC rules regarding direct selling companies. As an IBO in the Quixtar business these changes are of great interest and concern. I have been an IBO since Quixtar launched in 1999. As a single mother of three girls, I feel fortunate to have found such a great business vehicle to allow me to create a secondary source of income. However, I understand the concern the FTC has over unscrupulous business practices by other companies. In my twenty four years as a Hospital Pharmacist, it has always been important that I work with people and businesses that represent honest forms of creating a seconday income. Over the years, I have seen many friends and family taken advantage by businesses that promise a high return for little to no effort. These "businesses" include Women helping Women and an investment "opportunity" promoted heavily by the owners of Earth Link. We continue to deal with the ramifications these "opportunities" leave in their wake. My experience with Quixtar has always left me in awe with their willingness to work with business owners and consumers to ensure their satisfaction. I feel honored to represent such an honest business venture. Over the next year, I will generate an income that will match my retirement income from my enployer. The propositions that have been brought to my attention appear to limit legitimate businesses like Quixtar while illegal businesses will continue to disregard FTC rules. Firstly, the seven day waiting period is unnecessary since Quixtar has a full refund in the first 30 days. I recently had personal experience with this. An IBO who registered in my business became concerned after a couple of weeks had passed. Without any hesitation, Quixtar refunded her registration and the cost of the product she had received and consumed. This has been my experience with Quixtar since it's inception. Secondly, the requirement for a list of 10 IBO references appears to violate individual privacy. As a mother of three young girls, I would feel very uncomfortable if my personal information was listed for people to contact me. In my Quixtar business, I encourage people who are considering joining the Quixtar business to attend a local seminar where they will meet and ask questions of many other IBO's. It is important to me to determine whether a prospect understands the commitment to long term income growth and working with others to reach their personal goals. Throughout my work with Quixtar it has always been important to emphasize this is not a "get rich quick" business. Thirdly, regarding the disclosure of income proposal. This has been satisfied with the "Average Monthly Gross Income for Active IBO's" statement which is published on the web site and in literature. Finally, the disclosure of personal financial documentation leaves IBO's vulnerable to identity theft. It is easy to create financial statements. The only way to ensure these are accurate documents would be to include account numbers, social security numbers, and financial institution names. Legitimate businesses would be hampered by this ruling while illegal businesses could create false documentation. In conclusion, as an IBO in the Quixtar business I am more concerned about illegitimate business practices than you may be. I am constantly dealing with the negative ramifications of these "get rich quick" schemes. It would be of great help to have a FTC website that would list businesses that are ethical and legitimate. This site could include a forum, similar to that of the Better Business Bureau, which allows the public to have their concerns addressed by the FTC. Thank you for allowing my opinions to be voiced. We as Quixtar IBO's are interested in a better future for the entrepreneur. Sincerely, Patti Carlton