|Received:||7/16/2006 10:39:51 PM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:Thank you for supporting control of fraudulant and deceptive business claims. Working with a legitimate business opportunity as a Quixtar IBO, one of the saddest encounters I experience is a promising individual's fear and eventual rejection of our opportunity because of negative situations they've had with non-legitimate businesses. A fair and effective rule would help and protect us all from such experiences. The public needs to know there are genuine opportunities like ours, and to be protected from those that aren't legitimate. However, I have a few concerns with the current FTC proposal: 1) The 7-day waiting period: We frequently work with entire families, where parents register their children, siblings register each other, etc. Even though all of the family members would typically see the information within days, under this rule, it could then take as long as a month for them to have a chance to start working together. Whether in family groups, or simply geographically-centered groups, the effect would be the same. Also, we often travel for business while working full-time jobs; the waiting period would greatly increase travel time in multiple trips when one would have otherwise been sufficient to start the group's work. As that process then duplicated throughout the organization, it could have a significant impact on the momentum of all of our businesses' growth. 2) References: I work most often via referrals vs. people w/ whom I am personally acquainted. Once a prospect has made some sort of commitment to go forward so I know THEY are legitimate, I then encourage them to connect with other members of our support team and give them that contact information. Until then, I would be reticent to share it with them. Also, because many of us do work through referrals, it would be very easy to mistake a ruling referral w/ a regular business referral, and the other IBO's would likely just register the prospect themselves. 3) Personal Financial Information/Substantiation: One of the most useful features of the Quixtar business model is its flexibility: My profitability doesn't depend on my sponsor's OR my group's, and neither does my prospect's. To disclose my own finances is irrelevant to them. I would recommend, however, subtantiation that WOULD be helpful to them and rule that we offer Quixtar-sanctioned one-sheets of what the average incomes are at each of the various levels within our compensation plan. The figures are available, and are updated each year. Currently we already use an SA4400 which states the average income for an active IBO and also defines what that term includes. Many of us also provide a Focus Board - a form which spells out the process of building a Quixtar business including its practices and principles. We also routinely encourage prospects to investigate the support system and meet our people PRIOR to registering. We're excited about our business and our support team. But it is ultimately up to the prospect, based on their adherence to the program's plan and their own effort to determine their profitability. Another concern: Identity theft and violation of privacy rights. I would NOT release my personal financial information to the general public, which is what this would represent. 4) Litigation information: If this is more clearly defined to mean I'm responsible for disclosing on my own business, I would be fine with this. But it appears to be unlimited in its scope - to any allegation ever brought against all of Quixtar and/or all IBO's everywhere? If this rule applied consistently to all businesses, a MacDonald's franchise owner in Vermont would need to disclose any litigations against every MacDonald's in the country? Also, if it must be included, please do limit it to convictions handed down - not just allegations. Anyone can allege anything against anyone with or without evidence or truth. Thanks in advance for your assistance!