| Comment Number: | 522418-04789 |
| Received: | 6/28/2006 12:16:26 PM |
| Organization: | LAAHK Enterprises |
| Commenter: | Asad Khan |
| State: | NY |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Dear FTC: We are Asad and Lubna Khan; we have joined the Quixtar business opportunity in early January of 2006. Since, I am relatively new in this business opportunity, I can relate to some of the issues placed in the proposal. The major ones that concern me are: The 7-Day waiting period... A person is not forced into joining the day they have seen the plan, in fact we make it clear to a prospect that, "Today" will only be a information gathering for both parties. A follow up is usually scheduled after 72 hours, so the individuals can review the material that was provided and also due their own independent research. This way, they can put together questions to be answered during the follow up. During the follow up, it is mainly about answering questions or concerns someone might have. If they are willing, we do sign up and inform them that there is 90-day money back guarantee. Usually the initial investment is about $250. The $250 is broken down as: $50 for registration, 100 for material to build a profitable business, and $100 for products for them to test. Which are all 90-Day money back guarantee, even if the products are used. Issue 2: Providing references... At the time of showing the business opportunity, all my prospects are provided with a 4-5 list of people that have been successful in the business, with whom they might relate to. In regards to providing personal information, would be a Privacy issue. But all prospects are given the opportunity to meet over 200 IBO's at a weekly conference, so they can briefly chat. If providing information to prospect to contact other IBOs, can pose a negative impact to my business. Issue 3: List of litigation Cases. All prospects are given specific websites to review our status, one being the Better Business Bureau in all regions, where they can see our status. It does not make sense when the proposal refers to seller, who is that. Is it I the individual IBO, Quixtar, or all IBO's. Issue 4: Earning disclosure... All prospects are shown the plan for 6-18 month plan and also a 2-5 year plan, but it is all averaged out to Gross Monthly IBO income of about $115/month. This is listed in literature that is provided. Issue 5: Financial Substantiation In speaking with any prospect, I inform them of how much I currently make and include time frame, but I also show checks of my mentor who has been very successful. Since the playing ground for every person entering into the business is the same, it shows that anyone can achieve this level. In regards to revealing financial flows, I don't think it is appropriate, one because we are not a publicly held entity. If I was to apply for a job at a private company, they are not required to show me their financial statements, so I don't know how this is any different. I would really appreciate if the FTC can re-consider their proposal and make necessary amendments to the issues listed above. Sincerely, Asad and Lubna Khan