| Comment Number: | 522418-10001 |
| Received: | 7/15/2006 3:47:02 PM |
| Organization: | Quixtar - Independent Business Owner |
| Commenter: | Leitgeb |
| State: | MI |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Dear FTC – I am a Quixtar Independent Business Owner (IBO) and would like to comment on your proposed rule for U.S. business opportunities. I am encouraged that you are trying to level the playing field for the legitimate business opportunities while trying to weed out the non- legitimate or scam opportunities. Without the scam opportunities it will make our lives a lot better since prospects will feel that they can trust in our opportunity, and trust the information that we provide them. I support that each prospect should receive adequate information so that they can make an informed decision. I do not support some of your initial proposed rules. 1) I do not support the 7-day waiting period for registration. In today’s world, we “want it now” and I think many people would get discouraged with this waiting period to register. Instead, I believe a “buyer’s remorse” rule should be implemented so that an individual could get out of a business opportunity without penalty within a certain time frame, similar to when you make a real estate purchase. 2) I do not support the list of 10 references. I believe that infringes on personal privacy. We already encourage our prospects and/or new IBO to meet our organization and that is where they can ask questions. We want to make sure they feel comfortable with us as much as we feel comfortable with them since we would be the ones helping and providing guidance to them. I do not want them calling other people in the area that are not part of our organization since each organization is run differently. The quantity of 10 may also be hard for some individuals if they are in an area where there are not 10 other people in that area that are part of the business opportunity. 3) I do not support the rules for personal earning/financial disclosures to prospects. This infringes on each persons personal financial security/privacy. I believe that “average income statements” should be part of the business opportunity literature; and then make sure that each prospect sees that literature. I currently use the Quixtar SA-4400 literature that has “average income statements” listed. People appreciate having this information in a printed form vs. just going on what someone says verbally. 4) I do not support a disclosure document that would list all litigation. Since each organization (line of sponsorship) operates slightly differently, I think it is unfair to those organizations that are running a fair organization. This document could include a lot of frivolous lawsuits that would be hard for a prospect to sort through the legitimate issues of an opportunity vs. frivolous issues. Having a list of the legitimate issues on file with the Better Business Bureau may be more appropriate, with disclosures that some of the lawsuits, etc. may not affect all lines of sponsorship of a business opportunity. Thank you for your consideration of my comments.