| Comment Number: | 522418-10545 |
| Received: | 7/16/2006 5:11:14 PM |
| Organization: | Network Twenty-One --- Quixtar |
| Commenter: | Ronald Lautenbach |
| State: | NM |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
U.S.A. Federal Trade Commission Re: Proposed New Trade Regulation Rule On Business Opportunities. I only received this information one {1} day ago. Therefore, I apologize for the quick comments. I would have liked to have had time to plan and edit these comments. I own a small Quixtar business. I joined Quixtar, after exploring many different business opportunities, because I was satisfied that all my questions and concerns were addressed. During my pursuit to find a legitimate business I was introduced to many illegal or unethical business schemes. Therefore, I agree that some protection must be created for the hopeful entrepreneur to get rid of all the “bad water” that would drown a new business owner. However, this protection must specifically address the perpetrators and not the legitimate business owners. No one wants to “throw out the baby with bad water”. Sustaining legitimate businesses to be successful is difficult enough without having to incur rules that affect them only by association in an industry that may have bad practices - even though the individual company may not. My experience in Quixtar has been extremely favorable. I was never pressured into purchasing or doing anything that was not my choice. Information, training, and instruction were always readily available. I was taught to always be upfront and honest with any prospect. Any time I needed to return a product, it was accepted and refunded to me in a timely manner. I believe a 7 day waiting period for registration of a new business person would be a huge hardship on small business opportunities. A very excellent alternative to this proposal would be an easy process of 100% money back guarantee if the registrant changes his/her minds. Currently, I explain to prospects that my business requires a very firm discipline and hard work. I also tell them that the majority of people getting into the business do nothing but purchase products for themselves; and therefore, make no income at all. I believe that requiring a list of references of people in the business would create a legal problem because it would erode people’s privacy. An alternative would be to provide {e.g. as Quixtar does} a list of volunteered statements from individuals in the business. I personally tell prospects that I love the business; and it fits my ethical standards etc. I also, tell them that many people reject the offer; and no means absolutely no to our business. I believe that requiring a different disclosure for every income claim is beyond reasonable fair trade practices. These requirements are not imposed upon other types of business unless under investigation. I believe that the current Quixtar statement that the average active business person in our program earns $118 per month is sufficient. That should alert the prospect that a much disciplined work ethic is needed to make significant revenue/income. Much of the backbone of USA's GNP {Gross National Product} is provided by small legitimate businesses. Any industry-wide, all inclusive rule changes that are not specifically directed at known illegitimate practices would severely damage and decrease the significant contribution of the legitimate direct marketing businesses. The FTC should pursue all possibilities to protect and preserve legitimate direct marketing companies like Quixtar & Network Twenty-One. Besides the monetary contribution to the USA's GNP & GDP {Gross Domestic Product}, Quixtar and Network Twenty-One continually educate their business men/women and the public in positive individual/community characteristics that enhance and improve businesses, families, individuals, and communities. They have been a stellar example and model of how to operate and run a legitimate and honest business. Please feel free to contact me at any time; or request me to present further supporting evidence during the rebuttal period. Thank you for your time and consideration. Ron Lautenbach