| Comment Number: | 522418-09259 |
| Received: | 7/14/2006 8:52:40 AM |
| Organization: | Quixtar, Inc. |
| Commenter: | Malcolm Klass |
| State: | NY |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Dear Sir/Madam, I am replying based on the FTC's proposal to govern the industry that provides income for my wife & I & several of our business partners. I recommend the following: *A level playing field should be created by requiring clear, simple & standardized income disclosures that applies to all direct sellers. (As it relates to average income of an active IBO - someone who does not pursue the business aggressively) *There should be a reasonable cancellation policy. (registration fee, minus shipping costs up to 1 year after registration) *There should not be a seven day waiting period before a prospect can register to do business.(A seven day waiting period will have similar restrictions like communist China as it relates to foreign businesses) *There should not be a requirement for Independent Business Owners to provide references to prospects or disclosure of past litigation.(As much as Corporate America does not have to provide past litigation information to their clients or employees, we should not have to do the same. However, prospects can be referred to the BBB, consumer protection association, FTC etc.) *Independent Business Owners should not have to disclose financial records to prospects.(Financial records are traditionally required when someone is borrowing money etc. In this case an IBO is not. Therefore, I recommend that prospects be informed of the total bonus Quixtar is offering for the fiscal year, or the total bonuses Quixtar has paid out to IBO's since 1999(excess of 300 million). I hope my contribution helps in shaping the rules that govern our industry. I would also like to thank the FTC for the tremendous service you provide in insuring that companies remain above board. I truly admire & appreciate the American system. Sincerely, Malcolm Klass