Business Opportunity Rule #522418-12455

Submission Number:
522418-12455
Commenter:
Felipe Alvarado
State:
CA
Initiative Name:
Business Opportunity Rule
I have been an IBO with Quixtar for the past 2 years, and thanks to the great system of assessment I have been able to reach some of my immediate goals and financial needs. The life style I am developing with this business does fit my everyday life, as I am able to incorporate my family in all aspects of the business. When I was registered, the information was so clear and sufficient that I was ready to register on the spot. And just as I received the information, I provide the same for the people who are interested in registring with Quixtar. One of the emphasis to new prospects is that Quixtar is not a "get rich quick business", and that there are no guaranties for success. I bring to them people who have been longer in the business to to informed them of the hard work to reach any goal in life. Also there are house meetings, monthly seminars and conventions for prospects to receive more information in the business programs. Once they decide to registered, they need about $130.00 to register and receive a products package. And as Quixtar guaranties all of their products if they decide not to do the business, they get the products money refunded 100%, event hough they used the products. As far as the new ruling for the business opportunity, it will affect me as IBO, but here is a proposed alternative; Problem 1: Prospects would have to wait seven days after receiving disclosures before they could register. Solution: Eliminate the waiting period, at least for opportunities like Quixtar where a prospect can get his money back if not satisfied. Problem 2: You would be required to give every prospect a list of "references" -- the names, addresses, and phone numbers of 10 other 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. Solution: Eliminate the requirement to provide 10 references. Problem 3: You would have 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. Solution: Eliminate the requirement to disclose past litigation. Problem 4: You would have to make a different disclosure for every income claim.This would include any examples you might use during an opportunity presentation to illustrate how the Plan works. Solution: If disclosures are needed, require a simple, standard, easily understood disclosure such as "average monthly gross income for 'active' IBOs." Problem 5: You would be required to provide prospects with personal financial documents to back up ("substantiate") any income claim. Solution: 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. As an IBO looking for financial freedom and to provide for the needs of all Americans, I submit these proposed alternatives hoping that the FTC would consider them as alterntives. Sincerely Felipe Alvarado