Business Opportunity Rule
I have been an independent business owner associated with the Quixtar (previously Amway) Corp. since 1990. I agree that direct selling business opportunities should be presented with solid viable information to prospective participants but feel some of the FTC's recommendations would not be in the best interest of current or future business owners. Specifically, I do not feel the need to provide references is a good idea. If you are seriously building a business you are actively working with you current upline business owners and are personnally introducing prospective owners you wish to sponsor to them and others who are involved in the business. Most all business organizations have on-going teaching and training functions that allow prospective owners to ask questions of a variety of current business owners, not just a handful that is preselected by the person recruiting new business. Also, I would not want to have my personal information given out to individuals whom I did not know or were not directly working with. The proposed rule would mandate that information on current business owners be circulated without those business owners consent or perhaps even their knowledge. Also, I don't see the need for a seven day wait period before registration. most people who are seriously contemplating business ownership have given it a week's worth of investigation. It is also unclear when the seven day wait would start, when you first contact someone, when you invite them to an information session, when you give them a piece of literature, there are many contact points when building a direct sales type of business and you are disclosing information at all of those points. It seems a ruling that would be very difficult to enforce and properly follow as a legitimate business owner. How would the corporation know if the 7 days had been met? It would have to operate on an honor system which could easily be ignored or misapplied. Also, if a money back guarantee is in place that serves as a means of recourse for those people who are uncomfortable with a decision to start a business. We can't regulate absolutely everything, people have to use a certain amount of their own intellect and insight. It works that way with traditional business opportunities and should within the direct sales industry as well.