| Comment Number: | 522418-09147 |
| Received: | 7/13/2006 11:55:58 PM |
| Organization: | Quixtar |
| Commenter: | Steven Englert |
| State: | FL |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
My wife and I have been a business owner with Quixtar since 1999.Our sponsors provided enough information based on the risk involved to make a basic decision. This business has been a complete blessing to my family and business associates. We were never led to believe this is a get rich quick deal, rather, something you could apply yourself to and succeed. Considering the nominal amount we invested to start, about $110, and the profit we make monthly up to this point, about $500, we are very pleased. The proposed 7-day wait would severely restrict the growth of my business. Since the idea of this proposal is so the prospect doesn't lose his money, why not require companies to refund the money if they decide that it isn't what they were led to believe. Quixtar refunds money because they don't want anyone to lose. It simply is not relevant to compare this business to a traditional brick and mortar business when it comes to losing money. Basically, since the investment is nominal ($100) compared to many thousands for traditional business it makes no sense to require financial statements. A general disclosure is already in place with the SA4400. As far as providing a list of litigation, this does not make any sense. This would be like asking every traditional business to provide a list of litigations to you before you would do business with them. How would that look for someone like Walmart who is sued every day? Besides, your proposal is so vague and sounds like anyone who even files a suit whether valid or not would have to be disclosed. Again, I believe in protecting the prospect. Requiring the company to refund the investment takes away the risk. Requiring one to provide references would cause several problems. One problem would be each individual’s privacy. If someone were to ask you how much money you make wouldn't you basically say it was none of his or her business? Wouldn't you? So why require it here? The way we do business is that the new person has a lot of opportunity to talk to other IBOs. A second issue is that in this business everyone starts at zero with no one in his or her business yet. How could they possibly have references? In conclusion, what is being proposed would severely restrict the opportunity for business growth. It appears that you are trying to place this business model in with traditional business. Much like trying to put a square peg in a round hole. Certainly, when you invest thousands and thousands of dollars you should get everything you propose for us to provide, but come on, when we are talking a hundred bucks and the chance to get your money back, WHY put all these undo burdens on the small direct selling business owner? ,