| Comment Number: | 522418-09525 |
| Received: | 7/14/2006 5:25:23 PM |
| Organization: | |
| Commenter: | Anson Nichols |
| State: | VA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Problem 1: Prospects would have to wait seven days after receiving disclosures before they could register. Solution: Eliminate the waiting period, at least for opportunities like Quixtar where a prospect can get his money back if not satisfied. (This rule suggests that someone could buy a gun sooner than they could begin a opportunity that would economically help their family and their community.) Problem 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. This requirement would infringe on the privacy of every IBO whose name, address, and phone number was provided to prospects. It would also penalize the sponsor, who would be required to give his prospect contact information for 10 other IBOs, any of whom might be happy to register the prospect themselves. Solution: Eliminate the requirement to provide 10 references. (How can a new person EVER get started since they would not have 10 references?) Problem 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. Among other problems, this requirement would open up Quixtar and other legitimate companies to false accusations. Meanwhile, dishonest companies would simply ignore the rule. Solution: Eliminate the requirement to disclose past litigation. (Anyone who has serious concerns on this matter can find legitimate public record information from a variety of state and federal sources.) Problem 4: You would have to make a different disclosure for every income claim. This would include any examples you might use during an opportunity presentation to illustrate how the Plan works. Solution: If disclosures are needed, require a simple, standard, easily understood disclosure such as "average monthly gross income for 'active' IBOs." (This is completely counter to the simple, repeatable, Quixtar-approved income plan that we share.) Problem 5: You would be required to provide prospects with personal financial documents to back up ("substantiate") any income claim. Solution: IBOs should possess substantiation for any claim but should not be required to disclose it except when required by the FTC and similar state agencies in an agency investigation. (How is my personal financial situation anyone else's business?) It seems evident from the proposed FTC rule that the staff who created the document have no clear concept of the Independent Business Ownership Plan approved by the Quixtar Corporation. Providing every prospect with important information about prior experiences is good for Quixtar and the entire direct selling industry. However, there are less burdensome ways to accomplish that goal than the manner set forth in the proposed FTC rule. The rewards of the Quixtar business opportunity go far beyond any monetary compensation. This is a business based on trust, integrity, and teaming up with people you care about to help each other succeed - in any area of life. I trusted a friend of mine who thought well enough of me to offer this opportunity to me. I can never re-pay him for doing so; it has made all the difference in my life.