|Received:||7/17/2006 3:33:44 AM|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:To Whom it May Concern: I have been a Quixtar IBO since September 1999, and have been able to secure sideline income as a Platinum IBO independent of employment Our next goal as an Emerald IBO would more than equal my current full time income, allowing me to devote more time with my family instead of to extra hours at night and weekends at my job. When I was registered as an IBO, all questions I had were answered, and I was allowed to conduct my own research. When sponsoring other IBOs, I do the same. I make it clear to my prospects that they will need to work in order to produce an income, and my model of success matches that provided in the disclosure statements for income.The proposed FTC rule has me concerned that my work over the last 6 plus years will be jeopardized by rules that other businesses or non-compliant members of businesses will choose to ignore. 1)The requirement of a seven-day waiting period would significantly affect the ability of a prospect in many ways, including the ability to choose when and where they can purchase products for personal consumption. I know of no law that says I need to wait seven days before I purchase products at a new CVS or Mc Donalds in my neighborhood. This requirement would also hamper the ability of others who would be delayed in their ability to grow their own business. TWe currently provide all prospects with an income projection statement with has been FTC approved. 2)The requirement to provide references seems restrictive compared to any other business. Would other retail and wholesale business be able to provide such references? Even if they would, what personal privacy issues are being brought up by doing so? The process of screening candidates for being sponsored incorporates work that I have done. Providing ‘references’ for the candidiate may give them a shopping list of individiduals who have not done any of the work, essentially taking advantage of my time and effort without any of their own. Also, as a part of the interview process, the candidates already meet other IBOs in my group. They are free to ask any questions of anyone they may choose. 3) The requirement to provide a “litigation list” does not seem fair in my opinion. No other company, service organization, or any other type of business seems to be required to provide such a list. Further, since I am an Independent Business Owner (IBO), I would not believe I would have the resources or revenue to search out each and every piece of litigation for every seller, key personnel, and its representatives. Lastly, how would I determine if any or all of these cases were settled, tried, or withdrawn? 4) The requirement for specific earnings disclosures is already satisfied by my providing each prospect with an FTC approved piece of literature which clearly states the business plan, income potential, and percentages of active IBOs who achieve such incomes. This would seem to serve no useful purpose for a candidate wishing to make a decision. 5) The requiement for financial substantation would seem to have no benefit on a candidates’ decision to obtain or structure a business for profitability. Since the concept of Independent Business Ownership allows an individual to do whatever they choose, no specific income claims other that a basic example or personal disclosure would be of value. I choose to share my specific income gains in this business with candidates because I know exactly what it took to earn them. Since this business is conducted under the tax laws in this country, specific disclosure of my income would in my opinion begin to infringe on my rights of privacy. I have built a successful Quixtar business in the past 6 years honestly and ethically, and do not believe this proposed rule would benefit anyone, including the candidates who may be actively pursuing legitimate business opportunites in this country. Thank you for this opportunity to voice my opinion.