| Comment Number: | 522418-10153 |
| Received: | 7/15/2006 8:16:17 PM |
| Organization: | Quixtar IBO # 4700071 |
| Commenter: | John Neel |
| State: | NC |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Good Afternoon Ladies and Gentlemen, my name is John Neel and I have a business as an "IBO" in which Quixtar is my supplier and other associates through Quixtar support and counsel me in EVERY challenge I face and they always will while I build my business. But the FTC's recent proposed "Business Opportunity Rule" this will significantly restrict opportunities to expand and teach others how to start their own fast paced honest business on their own with Quixtar's support and counseling to succeed. The proposed rule in its present form would create serous problems for every IBO. To start off prospects would have to wait seven days after receiving disclosures before registering with Quixtar's business opportunity. A possible solution would be to totally eliminate the waiting period, at least for opportunities like Quixtar where a prospect can get his/her money back if not satisfied. Second, IBO's as personal business owners would be required to give every prospect a list of “references” – the names, addresses, and phone numbers, of ten other IBO’s in the area – seven days before the prospect registers. This requirement would infringe on the privacy of every IBO whose name, address, and phone numbers were 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 (although Quixtar IBO’s know better than to do that). As a Quixtar IBO we learn how to teach successful business traits and habits. Also we train our new IBO’s to what does and does not work in their new business so it is only natural to be honest to our prospects while we are committing such a considerable amount of time with them. Third, we as business owners would be required to provide to every prospect a listing of all lawsuits, arbitrations, and other legal claims for the past ten years Quixtar and its IBO’s where the plaintiff alleged fraud , misrepresentation, or unfair trade practices – regardless weather or not the accusation was true. This would open Quixtar and other legitimate companies to false accusation. Meanwhile, dishonest companies would simply ignore the rule. A possible resolution to this could simply eliminate the requirements to disclose past litigation. Next, 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. My solution is if disclosures are needed impose a simple, standard, easily understood disclosure such as “average monthly gross income for ‘active IBO’s.” And last we would be required to provide prospects with financial documents to back up any income claim. To this “proposed rule I really do not think this should have been proposed because I believe it it’s a valid reason to release any kind of personal and financial information especially with the threat of identity fraud at hand in this country has. Quixtar only has an opportunity for people who looking to get out of the everyday rat race of life while being under the thumb of some boss. We release enough information not to confuse somebody and everything that is viewed by our prospects is totally legitimate, to the point, sometimes funny and definitely teachable. IF THERE ARE ANY QUESTIONS I KNOW MY ASSOCIATES AND ME WILL PLEASED TO ANSWER PRETTY MUCH ANYTHING.