| Comment Number: | 522418-04537 |
| Received: | 6/27/2006 10:36:24 AM |
| Organization: | |
| Commenter: | A Johnston |
| State: | SC |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Dear FTC Commission: Thank you for your efforts to protect consumers and prospective entrepreneurs from fraudulent get-rich-quick schemes and deceptive practices! I have been involved with the Quixtar opportunity for a little over two years now. I enjoy owning and operating my business. The scale is small right now, but I have developed several retail customers, and our monthly income, while not substantial, is steady and increasing. I wanted to provide to you some feedback on the proposed rule about business opportunities. Again, I applaud the effort and the intent of not just this proposed rule but all of the regulatory efforts of the FTC. Your diligence is a safe haven for credible organizations with the integrity of Quixtar. From my perspective, I see a few points where I can offer feedback.<p> First, the proposed rule would require sponsoring IBOs to provide prospective IBOs with a list of people already in business. This rule would put me in the awkward position of turning my prospect over to someone who may or may not be educated about how to properly and professionally conduct business. Also, if a prospective IBO were to contact me as one of the IBOs on the disclosure list, I would be unable to provide any informed information about a sponsoring IBO that I have not met. I am sure you understand that I couldn't vouch for the character of someone I hadn't met. From my experience, character and integrity are essential for success in the Quixtar opportunity (and any endeavor in life). Also, from my experience, character and integrity are the most widely disparate variables among people. For that reason, I believe the proposed requirement to disclose the contact information of 10 IBOs is not a viable requirement. I would propose instead that prospective IBOs have the opportunity to meet the specific IBOs in the organization that they will be working with. This is made possible in our organization by a system of personal access, open opportunity meetings, and invitation-only events. When I started my business, I not only had a chance to meet the people I am now working with, but I also had a chance to meet several of their leaders and other associates. I was invited to attend a meeting where I could be introduced to even more people who have a track record with Quixtar. I believe the systems and practices that we already abide by are well-able to provide any prospect with enough authentic testimonial and anecdotal evidence before they start their business. Feel free to explore what Quixtar recommends with respect to this rule and use their guidelines as a pattern. Secondly, I wanted to provide input on the proposed 7 day waiting period. I believe that this rule will not effectively shut down any prospect who makes a quality decision to be successful with the Quixtar opportunity. This also wouldn't cause super-skeptical, closed-minded people to all of a sudden change their perception. However, this may hinder those who are somewhere in the middle. I have met people who got involved with the Quixtar opportunity 'on a thin thread.' Rather than proposing a strict 7 day waiting period, I would recommend that an exception be made for opportunities like Quixtar where there is a money back guarantee for a period of 6 months. This would allow prospects to 'test the waters' without fear of loss. In our personal organization, there is often more than seven days between the time a prospect is presented with the opportunity and the time they register their business with Quixtar. As a matter of fact, we encourage people during that time period to ask as many questions to as many different IBOs as possible before they get started. Again, thank you for all you are doing. I applaud your efforts because Quixtar's credibility is bolstered as our servicing corporation continues to make above board compliance a priority. Best regards, A. Johnston