| Comment Number: | 522418-05184 |
| Received: | 6/29/2006 11:03:12 PM |
| Organization: | De Lany & Associates |
| Commenter: | Thomas De Lany |
| State: | CA |
| Subject: | Business Opportunity Rule |
| Title: | Notice of Proposed Rulemaking |
| CFR Citation: | 16 CFR Part 437 |
| No Attachments |
Comments:
Federal Trade Commission/Office of the Secretary Room H-135 (Annex W) 600 Pennsylvania Avenue, NW Washington DC 20580 Re: "Business Opportunity Rule, R511993" Gentlemen I am writing you regarding your proposed new "Trade Regulation Rule on Business Opportunities." My wife and I have been involved with Network Marketing for the past 9 years, originally with Amway and now with Quixtar since 1999. We have cultivated wonderful friendships with people in this business, have experienced tremendous personal development opportunities, and at a Platinum level in the business we have created a great side income. Our plan is to continue to build our business upon this solid foundation until we reach a level that will allow us to retire from our current jobs in manufacturing and contracting. Based on our personal experience, and that of many others who have grown their businesses along with us, we believe this goal is absolutely achievable. The 7-day waiting period the new regulation proposes will slow down our sponsoring rate as most people sign up that first meeting and begin to order product right away. The investment to become an IBO is minimal (<$135), all products available through Quixtar are 100% refundable, and we clearly disclose that any new business owners have 30 days to back out of their contract and receive a refund. The proposed requirement to provide references may violate reasonable privacy expectations of other IBOs in our business and could open a door for someone we have contacted to consider getting involved in the business with some other person on the list. The requirement to provide a “Litigation List” should be dropped as a complete waste of paper. This is not required of other businesses or other industries and I believe it would be tantamount to guilt by association (without facts to back up allegations). If I misrepresent something it should be actionable, but please don’t paint with such a broad brush so as to make it appear that I am representing a disreputable company when many litigation claims are not substantiated, or are outright misrepresentations based on my own personal experience. I have found Amway & Quixtar to be some of the most reputable business people, and corporation, that I have ever dealt with. Proposed requirement for financial substantiation seems to me questionable (possibly illegal). No one but the IRS or financial institutions are aloud to even ask for that information. The same holds true in your government job, it would be quite inappropriate for me to ask your pay grade because of my interest in your spot. Lastly I have found that every income claim that has been represented to me has been demonstrated to be accurate and achievable. As an example of the Quixtar Corporation leading the way in terms of disclosure, every IBO who registers with Quixtar or as part of my business, clearly sees and reads a disclosure that “…… The “active IBO’s” average Monthly gross income is currently $115.00.” In closing, I would ask the FTC to make every effort to stop unscrupulous network marketing schemes, but approach this in a way that does not put obstacles in the way of proven and credible network marketing business models. I would recommend that the FTC consider partnering with the IBOIA, or other credible networking business models, to work to solve this problem together. I have invested personally, emotionally, and financially in developing a successful, growing and credible business as an Independent Business Owner (IBO) in the Quixtar business model. The regulations being proposed would damage my current business and future opportunity to grow. I appreciate your serious consideration. Regards, Tom De Lany