|Received:||7/13/2006 1:39:06 AM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:Hello, Thank you for the chance to comment on the Business Opportunity Rule, R511993. I believe that the rule is a sincere attempt to protect the public from fraudulent businesses and fraudulent business practices. While I appreciate the FTC's interest in protecting citizens with this rule, it would adversely affect my independent Quixtar business. I have had a positive experience with my business and have been treated fairly and honestly by Quixtar and the individuals who introduced me to the business. Starting a Quixtar business involves an initial investment of a few hundred dollars, most of which is in merchandise which can be consumed or sold. The investment is backed by a full refund guarantee by Quixtar. So the proposed 7 day waiting period seems excessive with a money back guarantee on such a small investment. I personally encourage prospective business associates and customers to check out the business. I do not attempt to register people without providing them with corporate literature and suggest they meet with or speak to those associates who introduced me to the business. However, no other business to my knowledge is required to make clients wait 7 days or provide a random list of 10 references. If I gave a prospect names of other local business owners, the prospect might register with another person. Again, other business, e.g. car dealers, do not provide references or require a 7 day waiting period. I also feel that providing a prospect with all lawsuits and litigations for the past 10 years is not in keeping with other businesses. This proposal is unduly restrictive and unnecessary given the money back guarantee and the opportunity of arbitration with the business owner's board. Even in courts of law, information regarding prior lawsuits is often restricted or inadmissable. I feel the requirement to reveal lawsuits would seriously hamper my business and expose my business to false claims by competitors. I use the Quixtar literature for "average" income values and do not make any claims for potential income. Nor do I reveal my own business income which is irrelevant to the opportunity available to the prospect. Consequently I disagree with the proposal to require multiple disclosures of income or the requirement to reveal my income. I am explicit in speaking with prospects that this is a business and that income is dependent on the business owner's efforts. The business is simple but not necessarily easy and requires work to generate income. I feel that the business offers a fair opportunity to generate income in addition to the benefits of associating with other business owners and customers. Thank you for considering my comments.