| Comment Number: | 522418-10774 |
| Received: | 7/16/2006 10:22:15 PM |
| Organization: | Quixtar |
| Commenter: | Amy Bardos |
| State: | NC |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
I strongly discourage several rules proposed by the FTC within the Business Opportunity Rule. 1. Eliminate the seven day waiting period after receiving disclosures before prospects can register, at least for opportunities like Quixtar where a prospect can get his money back if not satisfied. 2. Eliminate the requirement to give every prospect a list of "references" – the names, addresses, and phone numbers of 10 other Independent Business Owners (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. When prospects are excited and ready to start their business, a 10 day waiting period would adversely effect their attitude and infringe on their ability to register other IBOs for themselves. 3. Eliminate the requirement 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. Lawsuits against other IBOs, not on our team, would have no relevance to our personal business or the prospect. 4. If income claim disclosures are needed, require a simple, standard, easily understood disclosure such as "average monthly gross income for 'active' IBOs." When new IBOs get registered, I make sure they understand the difference between the people who make a lot of money vs those who make minimums, and how to set and achieve their financial goals. 5. I should not be required to provide prospects with personal financial documents to back up ("substantiate") any income claim, as it is frankly none of their business. However, 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. Overall, I feel the rules proposed have very good motive, and will help eliminate fraudulent companies and practices. I believe the rules should also support companies like Quixtar, who have a proven track record, and not hinder future business develop for IBOs. Thank you, Amy Bardos